Core Viewpoint - Publicly offered Fund of Funds (FOF) has achieved its best performance in five years, primarily due to heavy investments in equity funds, especially in the pharmaceutical and technology sectors, reversing a four-year performance slump [1][3][4]. Group 1: Performance Metrics - As of August 17, 2023, 29 publicly offered FOFs have recorded annual returns exceeding 20%, with the best-performing FOF achieving a return of 34.28% [3]. - Over 95% of FOF products have turned positive in annual returns, marking a significant recovery from the previous years where the highest annual return was only 0.29% in 2022 [3][4]. - The top three FOFs in performance are from Guotai Fund, with returns of 34.28%, 31.27%, and 28.92% respectively [3]. Group 2: Investment Strategy Shift - FOFs have shifted their investment strategy from conservative bond funds to more aggressive equity funds, focusing on high-volatility stock funds [5][6]. - The leading FOFs predominantly hold equity funds, with the top-performing FOF, Guotai Youxuan Lihang, investing heavily in stock-based ETFs, including rare earth and Hong Kong innovative drug ETFs [6][7]. - The trend indicates a broader market shift towards aggressive investment strategies, with many FOFs now prioritizing technology and healthcare stocks [7][10]. Group 3: Market Dynamics - The recovery of FOFs is seen as a potential second growth curve for large fund companies, with an increase in total FOFs to 518 and a management scale of 1564.42 billion yuan as of Q2 2025 [4]. - The shift towards equity funds is crucial for retaining clients and ensuring the survival of FOF products, as those heavily invested in bond funds face significant challenges [9][10]. - Recent trends show that FOFs focusing on high-yield equity funds, particularly those with significant holdings in technology and Hong Kong stocks, are more likely to attract and retain investors [7][10].

Core Viewpoint - Publicly offered Fund of Funds (FOF) has achieved its best performance in five years, primarily driven by heavy investments in equity funds, particularly in the pharmaceutical and technology sectors [1][2][3]. Group 1: Performance Metrics - As of August 17, 2023, over 95% of FOF products have reported positive returns for the year, with the best-performing FOF achieving a return of 34.28% [2]. - The annual highest returns for public FOFs from 2021 to 2024 were 14.57%, 0.29%, 3.69%, and 17.14%, indicating a significant recovery in 2024 [2]. - The total number of FOFs in the market reached 518, with a total management scale of 156.44 billion yuan, reflecting a quarter-on-quarter increase of 9.45% [3]. Group 2: Investment Strategy Shift - FOFs have shifted their focus from conservative bond funds to more aggressive equity funds, with top-performing FOFs primarily holding stock-based investments [4][5]. - The top three FOFs by performance are heavily weighted in equity funds, with the leading FOF, Guotai Youxuan Lihang, investing predominantly in stock-based funds [4]. - The strategy of investing in high-yield funds, particularly those focused on technology and Hong Kong stocks, has become crucial for FOFs to maintain their client base and product viability [5][8]. Group 3: Market Trends and Client Retention - The current market trend shows a strong demand for FOFs that focus on high-elasticity equity funds, especially in technology and healthcare sectors, as clients are less likely to invest in FOFs heavily weighted in bond funds [8]. - The shift towards equity funds has not only helped FOFs escape a four-year performance slump but has also enhanced their ability to retain clients by demonstrating profitability [8][7].

Core Viewpoint - Publicly offered Fund of Funds (FOF) has achieved its best performance in five years, primarily due to heavy investments in equity funds, especially in the pharmaceutical and technology sectors, reversing a four-year performance slump [1][3][4]. Performance Summary - Over 90% of FOFs have reported positive returns this year, with the best-performing FOF achieving a return of 34.28% [1][3][4]. - As of August 17, 2023, 29 publicly offered FOFs have exceeded a 20% return, with the top three being Guotai Fund's Guotai Preferred Navigation (34.28%), Guotai Industry Rotation (31.27%), and ICBC Smart Progress (28.92%) [3]. - The annual highest returns for publicly offered FOFs from 2021 to 2024 were 14.57%, 0.29%, 3.69%, and 17.14%, indicating a significant recovery in 2024 [3]. Investment Strategy Shift - FOFs have shifted from conservative strategies focused on bond funds to aggressive strategies emphasizing equity funds, particularly high-volatility stock funds [5][6]. - The top-performing FOFs predominantly hold equity funds, with a notable example being Guotai Preferred Navigation, which has 8 out of 9 holdings in equity funds, including a focus on rare earth and Hong Kong innovative drug ETFs [6][7]. Market Trends - The total number of FOFs reached 518 with a management scale of 156.44 billion yuan, reflecting a quarter-on-quarter increase of 9.45% [4]. - The trend of investing in high-yield funds, particularly those focused on technology and Hong Kong stocks, has become crucial for FOFs to maintain client retention and product viability [10][11]. Client Retention and Future Outlook - The current market demand favors FOFs that heavily invest in high-elasticity equity funds, particularly in technology and pharmaceutical sectors, as opposed to bond funds [11]. - The ability of FOFs to adapt their investment strategies to focus on equity funds is seen as essential for retaining clients and ensuring the longevity of their products in a competitive market [10][11].

Core Viewpoint - The A-share market has shown a strong upward trend since July, with the Shanghai Composite Index surpassing 3600 points for the fourth time since 2007, 2015, and 2021, indicating a robust market recovery and investor sentiment [2] Group 1: Market Performance - Since September 2024, A-shares and Hong Kong stocks have experienced a multi-sector rotation upward, with sectors like dividends, artificial intelligence, banking, and innovative pharmaceuticals showing active performance [2] - As of August 6, 2023, 80 actively managed equity funds have increased by over 60% this year, primarily from leading fund managers such as E Fund, Huatai-PineBridge, and GF Fund [4] - The North Exchange Index has surged over 110% in the past year, with several funds outperforming this index, including the CITIC Construction Investment North Exchange Select Fund, which has seen a rise of over 200% [5][6] Group 2: Fund Performance - A total of 90 actively managed equity funds have achieved an annualized return of over 15% over the past three years, with E Fund leading with seven products [8] - The annualized return for the entire market's active equity funds is only -1.99%, highlighting the strong performance of select funds [9] - In the past five years, only 21 products have exceeded a 15% annualized return, indicating the challenges faced in the broader market [9] Group 3: Sector Insights - The innovative pharmaceutical sector has seen a strong rebound, with multiple stocks doubling in value this year, driven by fundamental growth prospects [11] - Fund managers express confidence in the sustainability of the current pharmaceutical market trends, emphasizing the potential for continued growth in innovative drugs and medical services [11] - The technology sector, particularly cloud computing and AI, is viewed as having long-term growth potential, although some managers anticipate short-term volatility due to prior gains [12] Group 4: Investment Outlook - The North Exchange remains at a high valuation, with some signs of bubble formation, but medium to long-term investment potential is still seen as favorable [13]