Group 1 - The report highlights two main challenges for asset allocation in 2026: a long-term challenge of reduced hedging effectiveness between stocks and bonds due to low interest rates, and a short-term challenge of market risk preferences returning to the middle from extremes [10][15][16] - The report emphasizes the importance of increasing income and reducing volatility in a low interest rate environment, suggesting that income can be enhanced by broadening asset types, while volatility can be managed through refined risk management tools [17][18][29] Group 2 - The report discusses the shift in risk preferences, noting that in recent years, investor sentiment has polarized, but there is now a trend of returning to a more balanced risk appetite [15][42] - It suggests that low-volatility strategies should incorporate more flexibility, while high-volatility strategies need to focus on risk control, indicating a shift in investment focus towards mid-cap blue-chip stocks and commodities like gold [44][45] Group 3 - The report outlines a dual approach to asset allocation: passive strategies as a shield for risk diversification and active strategies as a sword for enhancing returns, particularly in the context of low interest rates and changing market dynamics [46][47] - It recommends focusing on commodities, overseas assets, and alternative investments like REITs to achieve better risk-adjusted returns in the current market environment [52][54]

Core Viewpoint - The article discusses how domestic fixed-income products are facing declining yields, prompting some financial institutions to turn to overseas bond funds as a new investment strategy to enhance returns and diversify risks [1][3]. Group 1: Market Context - The overall yield of fixed-income products in the domestic market has been on a downward trend, with the average annualized yield for open-ended fixed-income products at 1.04% as of March 16, reflecting a decrease of 0.57 percentage points [3]. - The decline in domestic bond market yields and the limitations of credit downshift strategies have led financial institutions to seek higher-yielding assets to improve product attractiveness and yield levels [3][4]. Group 2: Investment Strategy - Some pure fixed-income products are beginning to allocate to overseas bond funds, such as the Xinyin Wealth Management's product that plans to invest in global or Asian bond funds starting in Q4 2024 [3]. - The strategy of investing in overseas bond funds allows for the diversification of investments across different countries and regions, thereby reducing single-market risks and enhancing portfolio stability [3][4]. Group 3: Asset Allocation and Management - Financial institutions are encouraged to adopt diversified asset allocation and refined management strategies to enhance yield levels and market competitiveness in a low-interest-rate environment [6][7]. - Recommendations include increasing allocations to equity-like instruments, alternative assets, and structured products, while also optimizing product operation management processes to improve asset allocation efficiency and yield levels [6][7]. Group 4: Considerations for Investors - Investors are advised to understand the risks, investment scope, and duration of products, and to choose strategies that suit their needs for enhancing fixed-income returns [8]. - It is emphasized that while "fixed-income plus" products may offer higher annualized returns than pure fixed-income products, they may also experience periods of volatility and drawdowns [8].