Core Viewpoint - The public offering FOFs are expected to increase their equity allocation as the A-share market rises, leading to a rebound in returns for these products [1][2][5] Group 1: Performance and Trends - Over 95% of public offering FOF products have positive returns year-to-date, with approximately 36 products achieving returns exceeding 20% [1] - The rebound in FOF returns is attributed to adjustments in portfolio structure, with a shift from pure bond funds to equity funds, particularly in sectors like technology and healthcare [2][3] - The best-performing FOFs have significantly increased their equity positions, with some funds reporting equity allocations as high as 99% [2] Group 2: Challenges and Risks - FOFs heavily invested in pure bond funds are underperforming, with many of these products facing pressure to liquidate [4][5] - There has been an increase in the number of FOFs facing liquidation risks, with 19 funds reporting liquidation this year, up by 8 from the previous year [5] - The industry is experiencing a divergence in performance, with smaller FOFs struggling to survive due to unclear positioning and competition for capital [5][6] Group 3: Future Outlook - The expectation is that the equity allocation in FOFs will continue to rise as economic recovery strengthens and market valuations remain low [5] - The industry is moving towards a more differentiated strategy, with a focus on the ability of FOF managers to adapt to structural opportunities in the equity market [6]