Core Viewpoint - The NEMO system integrates Fidelity's global asset allocation processes, enhancing the efficiency of fund managers and researchers, ultimately benefiting the multi-asset pension fund products [2][3][20]. Group 1: NEMO System and Its Functionality - The NEMO system transforms the investment process of Fidelity's multi-asset pension funds from a flat to a three-dimensional structure, incorporating various asset classes, regions, strategies, and managers [2]. - It provides a clear framework for strategic asset allocation (SAA), tactical asset allocation (TAA), and fund selection, ensuring a systematic approach to investment [2][20]. - The system emphasizes the importance of coupling the fund manager selection process, allowing for a more cohesive investment strategy [7][20]. Group 2: Investment Philosophy and Framework - The investment philosophy is centered around a framework-based approach, which helps in identifying and solving key investment problems [3][9]. - The focus on long-term performance over short-term gains is crucial, with an emphasis on maintaining a steady upward trajectory in net asset value [3][4]. - Trust is identified as fundamental in asset management, with a strong belief that maintaining client trust leads to sustained growth in assets under management [4][18]. Group 3: Key Personnel and Their Influence - Zhao Qiang, the head of Fidelity's multi-asset department, plays a pivotal role in translating global investment wisdom into actionable strategies for pension funds [3][4]. - His educational background at the University of Chicago, where he learned from Nobel laureates, significantly shaped his investment thinking and framework [8][9]. - The importance of a global team of experts is highlighted, as successful asset allocation cannot rely solely on individual fund managers [12][18]. Group 4: Market Position and Growth - Fidelity has established itself as a leading provider of pension fund management, with a significant market share in the U.S. and Hong Kong [2][17]. - The company has maintained a 20% growth rate in its pension products, attributed to its ability to safeguard client wealth during market crises [4][18]. - The emphasis on client satisfaction as a key performance indicator reflects Fidelity's commitment to long-term client relationships [17][18]. Group 5: Investment Strategy and Asset Allocation - The multi-asset investment strategy involves diversifying across various asset classes, regions, and strategies to mitigate risk and enhance returns [22][25]. - Tactical adjustments in asset allocation are informed by comprehensive macroeconomic research and data analysis, ensuring informed decision-making [26][33]. - The integration of quantitative and qualitative frameworks in fund selection allows for a thorough evaluation of fund managers and their strategies [35]. Group 6: Future Outlook and Development - The development of new pension fund products is underway, with a focus on risk management and achieving stable returns [43][46]. - Fidelity aims to leverage its global expertise to enhance the pension fund landscape in China, advocating for policies that promote default options in retirement savings [45][46]. - The long-term assessment of pension fund performance is emphasized, moving away from short-term metrics to foster a more sustainable investment environment [46].

Core Insights - The article discusses the differences between Target Date Funds (TDF) and Target Risk Funds (TRF) in the context of retirement planning, highlighting their unique characteristics and suitability for different types of investors [1][2]. Group 1: Target Date Funds (TDF) - TDFs are named after the expected retirement year of the investor, such as 2045 or 2050, and are designed to automatically adjust asset allocation as the retirement date approaches [2][5]. - The core advantage of TDFs is their "one-stop" solution, which includes a "glide path" mechanism that reduces equity exposure as the investor ages, helping to mitigate common behavioral finance pitfalls [6][5]. - TDFs are suitable for novice investors or those who do not have the time to manage their accounts, as they provide a lifecycle solution without the need for active asset allocation [2][6]. Group 2: Target Risk Funds (TRF) - TRFs are named based on risk levels, such as conservative, balanced, or aggressive, allowing investors to choose funds based on their risk-return preferences [2][7]. - The investment strategy of TRFs maintains a constant risk level, with specific equity allocations, such as 30% for conservative products, making them suitable for investors with a clear understanding of their risk tolerance [8][7]. - TRFs require a higher level of self-discipline from investors, as market emotions can lead to misjudgments in risk tolerance, making them more appropriate for those who regularly assess their financial situation [9][8].

Core Viewpoint - Fidelity International aims to serve as a bridge between Chinese and global capital markets, leveraging its extensive international network and decades of active management experience to adapt successful global strategies to the Chinese market [2][3][4]. Group 1: Strategic Positioning - Fidelity's strategy in China is rooted in its international experience, focusing on creating a two-way capital flow between international and Chinese markets [5][6]. - The company emphasizes a "dual perspective" research system, combining global insights with local market understanding to identify investment opportunities in China [4][6]. - Fidelity seeks to balance its identity as both an international institution and a local company, aiming for an optimal integration of both [4][5]. Group 2: Investment Approach - Fidelity has launched its first multi-asset fund in China, reflecting its global asset allocation strategy while focusing on local assets [6]. - The firm applies artificial intelligence in risk management, drawing from its North American experience to enhance its risk control measures in the Chinese market [6][7]. - Fidelity's active management approach has yielded strong performance, with its equity products ranking among the top in the international asset management sector in 2024 [6][8]. Group 3: Focus on Retirement Finance - The Chinese pension fund market is experiencing significant growth, and Fidelity aims to leverage its extensive global experience in retirement fund management to add value in this sector [8][9]. - Fidelity has been a key player in the development of pension systems in various countries, including the U.S., where it has managed substantial retirement accounts [9]. - The company sees a promising future for target date funds in China, driven by increasing policy support and growing public awareness of retirement investment [9].

Core Viewpoint - The article discusses the challenges and strategies of foreign asset management firms, particularly Fidelity, in navigating the Chinese market, emphasizing the need for localization and long-term investment strategies [1][2]. Group 1: Market Environment - Since the approval of the first wholly foreign-owned public fund company in June 2021, foreign public funds have begun to localize their operations in China [1]. - The Chinese market's institutional environment and investment behaviors are highly localized, making it difficult for international experiences to be directly applied [2]. Group 2: Strategic Framework - Fidelity has proposed a "two markets, two systems" strategy, focusing on the local market through partnerships with banks, brokers, and e-commerce platforms, while also catering to international investors seeking exposure to Chinese assets [4]. - The "two systems" include a product system and a research system, ensuring that global research resources are effectively aligned with the specific needs of the Chinese market [4]. Group 3: Investment Approach - Fidelity emphasizes the importance of understanding the genuine needs of the Chinese market, which is still evolving compared to more mature markets dominated by index products [5]. - The firm leverages its expertise in active management and multi-asset strategies, which are crucial for capitalizing on the structural alpha present in the A-share market [5][6]. Group 4: Long-term Commitment - Fidelity aims to maintain a long-term investment philosophy amidst the high volatility and emotional nature of the A-share market, avoiding short-term trends and thematic speculation [7]. - The company has established a stable investment framework and long-term evaluation for fund managers to ensure consistency in investment styles [7][8].

Core Viewpoint - The article discusses the challenges and strategies of foreign asset management firms, particularly Fidelity, in navigating the complexities of the Chinese market, emphasizing the need for a localized approach and long-term investment strategies [1][2][6]. Group 1: Market Challenges - Since the establishment of the first wholly foreign-owned public fund in China in 2020, foreign public funds have faced difficulties due to the highly localized market environment, which makes it challenging to apply international experiences directly [2][3]. - Foreign asset management firms are currently in a "positioning phase," where they are learning from the market and adjusting their organizational structures to meet unique local demands [2][3]. Group 2: Strategic Framework - Fidelity has proposed a strategic framework of "two markets and two systems," focusing on the local market through partnerships with banks, brokers, and e-commerce platforms, while also addressing international market needs for Chinese asset allocation [2][3]. - The "two systems" include a product system and a research system, ensuring that global research resources are effectively aligned with the specific needs of the Chinese market [3][4]. Group 3: Local Adaptation - Fidelity emphasizes understanding the true needs of the Chinese market, which is still evolving, providing opportunities for sustainable growth through active investment strategies and multi-asset approaches [4][5]. - The company aims to develop localized products based on the unique requirements of the Chinese market rather than simply replicating existing models from abroad [5][6]. Group 4: Long-term Commitment - In the context of the volatile A-share market, Fidelity stresses the importance of maintaining a long-term investment philosophy and a stable underlying structure to navigate short-term fluctuations [6][7]. - The firm has implemented a long-term evaluation system for fund managers, allowing them to adhere to their investment styles despite market changes, thereby fostering trust among investors [6][7].