Core Viewpoint - The public FOF funds have achieved remarkable performance in Q3 2025, with all funds reporting positive returns for the year, marking an unprecedented situation in the market [1][3]. Performance Highlights - The top-performing FOF product has recorded a return of nearly 70% this year, significantly outperforming many actively managed equity funds [2][5]. - The leading FOF fund, Guotai Youxuan Lianhang One-Year Holding FOF, achieved a return of 66.7%, followed by Guotai Industry Rotation Stock C at 60.3% and E Fund Gold Theme at 55.3% [3][4]. Fund Growth and Popularity - The total scale of public FOF funds increased from 165.7 billion yuan at the end of Q2 to 193.4 billion yuan by the end of Q3, with the number of funds rising from 517 to 518 [7][10]. - Some FOF products have seen their scale grow more than tenfold, indicating strong investor interest and confidence [10][12]. Investment Strategies and Trends - FOF funds have shown a significant preference for gold-themed funds, which accounted for 40% of the top ten performing FOF funds, reflecting a strategic focus on risk-averse assets amid rising geopolitical risks and fluctuating inflation expectations [5][19]. - The international gold price has been strong, surpassing $2,600 per ounce in Q3, contributing to the performance of gold-related investments [5][19]. Major Holdings and Adjustments - The top five funds held by FOFs include Hai Fudong Zhongzheng Short Bond ETF, Huazheng Gold ETF, and several other bond ETFs, indicating a strong focus on fixed-income securities [13][15]. - FOFs have increased their holdings in Huazheng Gold ETF by over 70 million shares in Q3, demonstrating a proactive approach to asset allocation [6][18]. Future Outlook - FOF fund managers are looking to balance their portfolios with a focus on technology and cyclical sectors for Q4, while maintaining a solid foundation in bond and gold investments [20][22]. - The consensus among FOF managers is to adopt a flexible and balanced investment strategy to navigate potential market volatility while seeking excess returns [22].

Core Insights - The FOF (Fund of Funds) managers are divided on whether to adopt a defensive or aggressive strategy in the fourth quarter after a year of market fluctuations, with some reporting significant returns [1] Group 1: Performance Overview - As of September 30, 2025, the average return of all public FOF products in the market over the past year was 19.04%, with all achieving positive returns [1] - Notable performers include Guotai Youxuan Lihang One-Year Holding Mixed FOF and E Fund Advantage Lihang Six-Month Holding Mixed FOF, with net value growth rates exceeding 60%, at 66.65% and 60.83% respectively [1] - Nearly ten products reported net value growth rates over 50%, indicating strong performance in a structural market [1] Group 2: Investment Strategies - FOFs that performed well typically timed their investments correctly and took bold positions, such as Guotai Youxuan Lihang One-Year Holding FOF, which had nearly 30% of its top ten holdings in rare earth ETFs [1] - E Fund Advantage Lihang Six-Month Holding Mixed FOF had a top ten holdings concentration of 65.96%, primarily in E Fund products, emphasizing a focus on technology growth [2] Group 3: Manager Insights - Manager Deng Da of China Europe Yingxuan Stable Six-Month Holding FOF opted for a conservative approach, analyzing asset risk-return characteristics to maintain stability [3] - Deng highlighted that large-cap technology stocks in the A-share market have a lower risk-return ratio compared to similar U.S. and Japanese stocks, while domestic blue-chip stocks present better risk-return characteristics [3] - Manager Liu Jian of Tongtai Youxuan Three-Month Holding FOF expressed a balanced yet proactive strategy, focusing on macroeconomic clarity and the importance of technology sectors [5] Group 4: Portfolio Composition - The top ten holdings of China Europe Yingxuan Stable Six-Month Holding FOF are all bond funds, with the largest being Hai Fuyitong Zhongzheng Short Bond ETF at 14.59% [5] - Tongtai Youxuan Three-Month Holding FOF showed a significant shift in its portfolio, with the top two holdings being Fu Guo Zhongzheng Hong Kong Stock Connect Internet ETF and Huaan Chuangban 50 ETF, indicating a more aggressive stance [6]

Core Viewpoint - The public fund of funds (FOF) has shown a clear adjustment strategy in the first half of the year, recognizing the attractiveness of equity assets and structural market characteristics, while continuing to capture market opportunities during rotations [1][4]. Group 1: Performance and Strategy - The public FOF market has experienced double growth in both performance and scale, with an average return of 21.21% over the past year, and nearly all FOF products achieving positive returns [5]. - The top-performing FOFs have heavily invested in sectors such as rare earths, innovative pharmaceuticals, technology, and gold, with a focus on rebalancing strategies for sectors that have seen short-term price surges [1][3][4]. - The "Guotai Preferred Navigation One-Year Holding FOF" has outperformed with a net value growth rate of 78.46% over the past year, driven by significant investments in rare earth ETFs [2][5]. Group 2: Investment Focus - Fund managers are optimistic about rare earths due to supply-side reforms and the potential for price recovery, while also favoring innovative pharmaceuticals and gold due to improving fundamentals and market conditions [3][4]. - The focus on high-dividend value stocks includes sectors such as banking, insurance, and technology, with an emphasis on AI, semiconductors, and consumer electronics as key areas for investment [4][5]. Group 3: Market Trends - The total scale of public FOFs reached 1650.16 billion yuan by the end of the second quarter, marking a growth of over 25% from the beginning of the year, indicating increasing attractiveness in the FOF market [5][6]. - The issuance of new public FOF products has surpassed previous years, with 38 products launched in 2023, reflecting a growing interest in this investment vehicle [5][6].