Core Insights - The market environment is enhancing the value of FOF (Fund of Funds) allocation strategies, with private FOF strategies rapidly increasing their share in high-net-worth client asset allocation [1][4] - The demand for wealth management is shifting from "single appreciation" to "stable diversification," making FOF strategies increasingly favored by investors [3][4] Group 1: FOF Development and Market Potential - The FOF strategy's development requires three main supports: a large fund product market, long-term capital entering the market, and improved investor awareness [3][4] - In the domestic market, the scale of non-monetary public funds exceeds 22 trillion yuan, and private fund scale exceeds 12 trillion yuan, providing a rich pool of underlying assets [3][4] - The introduction of personal pension systems is accelerating the entry of long-term funds into the market, while there is a strong demand for low-volatility products due to the shift of resident wealth from real estate to financial assets [3][4] Group 2: FOF Strategy Framework - The FOF strategy is structured around a three-tier framework: macro direction setting, strategy selection, and fund selection, aiming to help investors achieve stable wealth growth [1][5] - FOF strategies allow for both broad asset diversification and strategy diversification within the same asset class, mitigating extreme risks and capturing multi-dimensional returns [5][6] Group 3: Risk Control Mechanism - The core of FOF's risk control lies in "double diversification," which provides a more robust safeguard compared to traditional funds that only diversify single asset risks [7] - The first layer of diversification involves asset dispersion within underlying funds, while the second layer focuses on diversifying strategies and managers to avoid "same-source risk" [7] - FOF strategies can serve a wider range of clients with varying risk preferences, offering flexibility in capital utilization and target volatility settings [7] Group 4: Future Outlook - The potential for domestic FOF products is significant, with expectations for the introduction of quantitative and hedging strategies to enhance risk-return profiles and product attractiveness [8]