Core Viewpoint - The FOF (Fund of Funds) investment strategy should focus on both multi-asset allocation to provide stable returns and the selection of fund managers to achieve excess market returns. The FOF team at Wanji Fund employs a dual approach of fundamental research and manager selection to create a comprehensive investment system [1]. Group 1: FOF Investment Strategy - The FOF investment team utilizes a three-tiered alpha source: top-level asset allocation, middle-level industry fundamental research, and bottom-level excellent manager research [1][2]. - The macro-level analysis employs an economic six-cycle model based on monetary, credit, and growth indicators to assess different economic phases and their impact on asset performance [1][29]. - The team emphasizes the importance of understanding different fund products (ingredients) and client needs (cuisines) to create tailored investment solutions [1][6]. Group 2: Research and Analysis Framework - The mid-level research involves a closed-loop system of industry chain research, sell-side analyst communication, and interviews with industry fund managers to identify investment opportunities [2][24]. - The FOF team conducts thorough due diligence on various sectors, including innovative pharmaceuticals and AI, to strategically position their fund products [2][24]. - The investment framework includes dynamic adjustments based on macro and mid-level insights, ensuring a diversified and responsive fund composition [2][21]. Group 3: Product Offerings - Wanji Fund has developed a robust multi-asset FOF tailored for bank wealth management and institutional investors, focusing on stable returns while controlling drawdowns [3][32]. - The product lineup includes four main strategies: "Fixed Income+" strategy, value-oriented FOF, balanced growth FOF, and a mixed-asset retirement FOF, each with distinct risk-return profiles [3][4][12]. - The "Balanced Growth" FOF achieved a 34.01% return over the past year, while the retirement FOF recorded a 10.17% return, showcasing the effectiveness of their investment strategies [4][12]. Group 4: Manager Selection and Classification - The manager selection process is based on four criteria: mature investment philosophy, stable investment process, diligent attitude, and strong performance [19]. - The FOF team categorizes equity funds into three main types: balanced funds, industry-specific funds, and quantitative/index funds, allowing for targeted research and investment strategies [17][18]. - Each fund manager is limited to a maximum holding of 3% in the portfolio to ensure diversification and mitigate risks associated with individual performance [8][22]. Group 5: Economic Cycle and Asset Allocation - The economic six-cycle model helps the team understand asset performance variations across different economic phases, guiding their investment strategies [26][29]. - In the current credit expansion phase, the team has significantly overweighted growth-style funds, particularly in technology and innovation sectors [31]. - The FOF products are designed to cover a wide range of asset classes, providing better stability compared to traditional stock-bond mixes, thus meeting the diverse needs of clients [32][34].

Core Viewpoint - An excellent FOF (Fund of Funds) team is responsible for multi-asset allocation to provide users with all-weather returns and to select fund managers to achieve excess market returns [3][10]. Group 1: FOF Investment Framework - FOF investment requires three levels of understanding: 1) understanding investment goals, 2) understanding matching assets or strategies, and 3) understanding suitable managers [1][13]. - The FOF investment framework consists of fundamental research, manager research, and dynamic portfolio balancing [18][21]. Group 2: Alpha Sources - There are three layers of alpha sources in FOF investment: top-level asset allocation, middle-level industry fundamental research, and bottom-level excellent manager research [3][21]. - The macro level employs an economic cycle model based on monetary, credit, and growth indicators to assess asset performance across different economic cycles [3][38]. Group 3: Manager Selection - The selection of fund managers is critical, with a focus on their investment philosophy, stable investment processes, diligence, and performance [26]. - The company tracks over 900 funds out of more than 5000 available, categorizing them based on investment style and industry focus [24]. Group 4: Portfolio Construction - The portfolio construction strategy involves a diversified approach, with no single manager holding more than 3% of the portfolio [5][12]. - The company has developed a robust multi-asset FOF that aims for better returns than traditional stock-bond mixes by utilizing low correlation between assets [5][43]. Group 5: Specific FOF Products - The company manages four types of FOF products: 1) "Fixed Income+" strategy, 2) Value style FOF, 3) Balanced style FOF, and 4) Pension-oriented FOF [6][7]. - The "Balanced Style FOF" achieved a return of 34.01% over the past year, while the "Pension-oriented FOF" achieved a return of 10.17% [6][7]. Group 6: Economic Cycle Analysis - The economic cycle model divides the economy into six phases: credit expansion, economic recovery, monetary tapering, credit tapering, economic slowdown, and monetary expansion [35][38]. - Different asset classes perform variably across these cycles, with equities performing well during credit expansion and economic recovery phases [38][40]. Group 7: Customization for Institutional Investors - The company offers customized FOF products to meet the needs of bank wealth management subsidiaries and institutional investors, focusing on stable strategies and all-weather asset allocation [43][46]. - The multi-asset FOF covers various asset classes, including A-shares, overseas equities, gold, commodities, and bonds, providing a more stable alternative to traditional strategies [43][46].