Core Insights - The FOF (Fund of Funds) market has shown significant growth in both issuance and scale this year, with 59 new FOF products launched, totaling an issuance scale of 53.481 billion yuan, surpassing the entire year of 2024 [1] - Performance-wise, 169 out of 522 FOFs have yielded returns exceeding 20%, with 11 FOFs achieving returns over 40% as of October 30 [1] - The strong performance of FOFs is attributed to their allocation in stock ETFs, particularly highlighted by the top-performing FOF, Guotai Youxuan Linghang One-Year Holding Mixed FOF, which has a significant holding in a gold stock ETF [1] FOF Market Performance - The FOF market has seen a total of 59 new products established this year, with a combined issuance scale of 53.481 billion yuan, significantly exceeding the total for 2024 [1] - As of October 30, 2023, 522 FOFs have been tracked, with 169 achieving returns over 20% and 11 exceeding 40% [1] ETF Allocation - The best-performing FOF, Guotai Youxuan Linghang, has a primary holding in a gold stock ETF, constituting 15.85% of its assets [1] - In Q3, seven of the most favored funds by FOFs were ETFs, with the Huazhang Gold ETF being the most held, appearing in the top ten holdings of 99 FOFs [1][2] Popular Funds - The top 20 funds held by FOFs in Q3 include popular ETFs such as Huazhang Gold ETF, Hai Fudong Zhongzheng Short Bond ETF, and Pengyang 30-Year Treasury Bond ETF, among others [2][5] - The highest market value held by FOFs in Q3 was in the Yifangda Kairong Mixed Fund, valued at 587 million yuan, marking a 52.80% increase from the previous quarter [7] Future Outlook - FOF managers express optimism towards equity assets, focusing on growth styles while also considering cyclical and dividend opportunities [7] - There is a strategic emphasis on increasing defensive positions in portfolios, particularly in sectors like new energy materials and real estate [8] - The overall sentiment indicates a belief in a gradual upward trend for Chinese assets, driven by policy initiatives and technological recovery [8]

Core Viewpoint - The public FOF (Fund of Funds) market has seen a significant increase in new product issuance and scale in 2023, highlighted by the occurrence of a "one-day sell-out" for new products, indicating strong investor demand [2][3]. Group 1: Product Issuance and Performance - As of August 5, 2023, a total of 36 public FOF products have been issued this year, with a total issuance of 33.04 billion units, marking a substantial increase compared to previous years [2]. - The average return for public FOFs this year is 6.21%, with some products achieving net value increases of over 20% [3]. - Nearly 80% of public FOFs have restored their net value to above 1 yuan, with 12 products showing returns exceeding 30% over the past year [3]. Group 2: Asset Allocation Demand - The demand for stable investments is rising due to declining interest rates and the trend towards net value-based financial products, which is benefiting public FOFs [4]. - The importance of asset allocation is emphasized, as diversified portfolios can help investors mitigate risks and enhance long-term returns [4]. - Leading fund companies are evolving their asset allocation strategies, with a focus on providing comprehensive asset allocation solutions rather than merely selecting funds [4]. Group 3: Sales and Service Innovations - Sales strategies are crucial for promoting allocation-type products, with banks like China Merchants Bank enhancing their asset allocation service systems [5]. - The introduction of customized FOF products based on asset allocation logic aims to cater to clients with varying risk preferences [5]. Group 4: Market Outlook - FOF fund managers generally have a positive outlook on equity assets, although their specific allocation strategies may vary [6].