Core Viewpoint - The demand for low-volatility and stable investment products has reached unprecedented heights due to increased market volatility, leading to a significant interest in fixed income plus and low-risk FOF products [1][2]. Group 1: Market Demand and Product Development - Investors consistently seek products that can achieve stable wealth growth regardless of market conditions, which underpins the growth of fixed income plus funds and low-risk FOFs [2]. - A significant gap exists between the supply of absolute return products that strictly control drawdowns and the actual demand from risk-averse investors, prompting a focus on conservative FOFs [2][3]. - The challenge of managing a conservative FOF product is compounded by the manager's previous experience primarily in high-equity strategies, necessitating a clear product positioning focused on safeguarding investor trust [2][3]. Group 2: Investment Strategy and Risk Management - The investment strategy emphasizes risk control and volatility management to construct a low-volatility, steadily growing return curve, drawing on the manager's extensive experience in absolute return investing [3][5]. - The conservative FOF aims to maintain a maximum drawdown of less than 2% while achieving an annualized return of over 3%, a standard that few funds have met in the past five years [2][5]. - The manager prioritizes drawdown control over short-term high returns, believing that long-term upward net value is essential for the product's sustainability [6]. Group 3: Asset Allocation and Transparency - The asset allocation strategy focuses on clear and transparent holdings, primarily investing in pure bond funds and utilizing ETFs for equity exposure to minimize volatility [7]. - Short-duration bonds with high Sharpe ratios are preferred for their safety, while ETFs are chosen for their ability to mitigate unconventional market risks [7]. - The approach involves infrequent adjustments to bond positions, relying on precise duration management to control risk effectively [7].