Core Viewpoint - The article discusses the transformation and challenges faced by the capital market, emphasizing the need for professional investment research to optimize asset allocation. It highlights the shift in China's public fund industry from scale expansion to high-quality development, driven by the evolution of fund managers and research systems [1]. Group 1: Foreign Fund Management in China - Since the approval of the first wholly foreign-owned public fund company in June 2021, foreign public funds have begun their localization journey in China, facing deeper challenges such as avoiding a "copy-paste" approach and developing differentiated strategies [4]. - Fidelity's General Manager, Sun Chen, emphasizes the importance of finding a "long-term solution" to establish a core advantage in a highly localized market, which includes a dual-market strategy focusing on both local and international markets [5][6]. - The "two systems" strategy involves integrating local and global research frameworks to create investment strategies that meet the specific needs of the Chinese market, ensuring a beneficial cycle between local client demands and global product offerings [6][8]. Group 2: Investment Strategies and Market Dynamics - Sun Chen believes that the Chinese asset management industry is still evolving, presenting sustainable growth opportunities due to its relatively weak efficiency and high volatility in investor behavior [7]. - Fidelity's approach to multi-asset strategies leverages its global experience, particularly in the pension investment sector, to introduce these strategies into the Chinese market [7][8]. - The firm focuses on long-term investment principles, avoiding short-term trends and emphasizing a stable investment framework to navigate market fluctuations [9][10]. Group 3: Low-Volatility Investment Products - In response to increasing demand for low-volatility products, the article highlights the growth of fixed-income plus funds and low-risk FOFs, which aim to provide stable wealth growth regardless of market conditions [13][14]. - Jiang Hong from Invesco Great Wall emphasizes the importance of strict drawdown control, aiming for a maximum drawdown of 2% while achieving an annualized return of over 3%, which is a challenging standard in the current market [14][17]. - Jiang's management of a conservative FOF product focuses on risk control and volatility management, utilizing a diversified asset allocation strategy to ensure steady growth and minimize drawdowns [15][19].

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].