Core Viewpoint - The public FOF (Fund of Funds) market is experiencing a significant turnaround, with the first product achieving a doubling of performance, indicating a new growth phase for this product category as investor recognition increases and the market size surpasses 180 billion yuan [1][2]. Group 1: Performance and Growth - The first public FOF to achieve a doubling of returns is the Qianhai Kaiyuan Yuyuan FOF, which was established in May 2018 and has an asset size of 168 million yuan as of Q3 this year, with a year-to-date return of 38% and a cumulative return of 129% [2]. - Other notable public FOFs with strong long-term returns include Xingquan Antai Balanced Holding (79.61%), China Universal Pension (70.12%), and others, with their asset sizes ranging from 67 million to 969 million yuan [2][3]. - The total number of public FOFs has reached 518, with a management scale of 187.25 billion yuan, reflecting significant growth and diversification in product offerings and investment strategies [3]. Group 2: Investment Strategies - The success of public FOFs is attributed to a strategic focus on industry-themed funds, reducing allocations to broad-based funds, which have shown weaker performance [4]. - The Qianhai Kaiyuan Yuyuan FOF has allocated nearly 48% of its portfolio to resource-themed funds, which have significantly contributed to its performance, with returns of 81.73%, 67.27%, and 47.38% for its top holdings [4]. - The Penghua Pension 2045 Mixed FOF has also benefited from a heavy allocation to narrow-based products, particularly in the technology sector, with top holdings showing returns of 58.65% to 104.06% [5][6]. Group 3: Market Outlook - Star fund manager Li He of Qianhai Kaiyuan Yuyuan FOF anticipates a positive outlook for the equity market in Q1 next year, driven by expected improvements in economic data and favorable stock-bond valuations [7]. - The investment strategy includes a diversified asset allocation of 30% in gold, 30% in equities, and 40% in fixed income, aiming for both stability and growth potential [7][8]. - Li He emphasizes the importance of gold in the portfolio as a hedge against equity risk and a source of potential capital gains, given the ongoing global fiscal challenges and inflation risks [8].