Core Insights - The public FOF (Fund of Funds) industry in China has experienced significant growth in 2023, with a notable increase in scale and popularity among investors, particularly in the context of a rising equity market [1][2][4] - The Huazhong Yingrui Stable Preferred 6-Month Holding Period FOF has emerged as a standout product, benefiting from a multi-asset allocation strategy that has led to substantial growth in its scale [1][7][11] - The evolution of the FOF industry reflects a shift from single-asset focus to multi-asset strategies, allowing for better risk management and enhanced returns [6][11] Industry Development - The FOF industry in China has gone through cycles of growth and decline since its inception in 2017, with a significant boom in 2021 driven by regulatory changes and a shift away from guaranteed bank products [2][4] - After a period of underperformance, fund companies have focused on optimizing investment portfolios and innovating product designs to meet diverse investor needs [2][3] - The demand for stable investment options has increased, leading to a resurgence in the popularity of multi-asset FOF products [3][4] Product Strategy - The Huazhong Yingrui Stable Preferred FOF employs a risk parity model to balance the risk contributions of various asset classes, aiming for stable performance [7][11] - The product has undergone significant upgrades, expanding its asset classes and incorporating new strategies to enhance yield and adaptability in different market conditions [8][9][10] - The diversification of assets, including international equities and commodities, allows the FOF to seek incremental returns while managing risks effectively [9][10] Team and Expertise - The success of the Huazhong Yingrui FOF is attributed to the experienced team at Huazhong Fund, which emphasizes a systematic approach to asset management and continuous evolution of investment strategies [10][11] - The fund manager, Lu Jingchang, has extensive experience in the industry, contributing to the product's robust performance through strategic asset allocation and risk management [10][11]

Core Viewpoint - The public FOF (Fund of Funds) industry in China is experiencing a resurgence, driven by a shift in investor demand towards multi-asset strategies that provide stability and risk diversification in volatile markets [2][4][7]. Group 1: Industry Development - The public FOF industry has evolved from its inception in 2017, experiencing a boom in 2021 due to regulatory changes and a shift away from guaranteed bank products, leading to increased popularity of stable FOFs [4][5]. - After a period of underperformance and reduced investor interest, the industry is now revitalizing, with fund companies optimizing portfolios and innovating product designs to meet diverse investor needs [4][5][7]. - The current market environment has prompted a collective push towards FOFs, as investors seek long-term wealth growth and stability across different market conditions [7][8]. Group 2: Product Strategy - The Huaan Yingrui Stable Preferred 6-Month Holding Period FOF has emerged as a leading product, benefiting from a multi-asset allocation strategy that balances risk and enhances returns [2][10]. - The fund employs a risk parity model to maintain balanced risk contributions from various asset classes, ensuring stable performance through dynamic rebalancing based on market conditions [10][12]. - The product has undergone significant upgrades, expanding its asset classes to include REITs, commodities, and international equities, thereby enhancing its ability to capture diverse revenue sources [13][14]. Group 3: Manager Expertise - The fund is managed by experienced professionals, including Lu Jingchang, who has extensive experience in FOF investment and a proven track record in managing large-scale fund portfolios [15][16]. - The management team focuses on achieving sustainable risk-adjusted returns through strategic asset allocation and dynamic risk management, adapting to market changes effectively [15][16]. - The company's investment research platform and diversified team structure support the FOF's comprehensive investment approach, enabling it to navigate various market environments successfully [14][15].