Core Insights - Multiple public offering FOFs are being forced to liquidate due to failure to meet survival conditions, reflecting a market-driven elimination of non-competitive products [1][4][5] - Despite challenges, some fund companies are increasing their FOF offerings, with a significant rise in issuance in 2025 compared to the previous year [1][8] Summary by Sections Liquidation of FOFs - Since August 2025, 13 public offering FOFs have announced liquidation, with 11 being initiated funds [1][2] - The Dachen Yixiang Stable Pension Target One-Year Holding Period FOF was among those liquidated due to its size falling below 200 million yuan after three years [2][3] Performance Issues - The overall performance of FOFs has been underwhelming, with many funds showing returns of less than 5% over three years, and some even experiencing declines of over 10% [4][6] - A significant portion of existing FOFs have management scales below 200 million yuan, indicating a widespread issue of "mini" funds [6] Market Dynamics - The low recognition of FOF products in the market has led to challenges in attracting new investments, despite some funds achieving high excess returns [7][8] - The dual fee structure of FOFs contributes to higher holding costs, further diminishing their appeal [6] Future Trends - The future development of FOFs is expected to focus on greater diversification and specialization, with an emphasis on cross-market and cross-asset class allocations [10] - Fund companies are likely to enhance their research capabilities and leverage technology to improve investment decision-making [10]