Core Viewpoint - The public FOF (Fund of Funds) market has shown significant growth in 2025, with a notable increase in demand for stable FOFs and a shift towards diversified asset allocation strategies [1][3]. Group 1: Market Growth and Trends - As of June 30, 2025, there are 518 FOFs in the market, with a total scale of approximately 165.7 billion yuan, reflecting a quarter-on-quarter increase of about 14.6 billion yuan, or 9.68% [1]. - The demand for stable FOFs has increased, with the proportion of stable debt-mixed FOFs reaching 31% of the total FOF market [3][4]. - In Q2 2025, 15 new public FOFs were launched, with a total issuance scale of approximately 18.6 billion yuan, marking a continued upward trend [3]. Group 2: Fund Performance and Preferences - The bond-type FOFs have seen significant net subscriptions, with the top-performing bond FOF, Bosera Zhenxuan Chuhui, increasing by 6.847 billion units [5][6]. - The one-year return rates for the top three FOFs were 4.95%, 4.50%, and 5.19%, indicating stable performance [7]. - Despite high returns from target date and equity FOFs, there was no significant net subscription for these products, highlighting a preference for stable options [8]. Group 3: Asset Allocation Strategies - Public FOFs have increased their allocation to passive bond funds while reducing exposure to pure index equity funds, with the proportion of pure bond fund holdings rising from 30.75% to 36.80% [12][13]. - The allocation to passive equity funds has decreased, reflecting a strategic shift in asset allocation [13]. Group 4: Management and Concentration - The number of public institutions managing FOF products has increased to 85, with the top ten managers holding 60.8% of the market share, indicating a slight decrease in market concentration [10][11]. - Notable fund managers with FOFs exceeding 10 billion yuan include Xingzheng Global Fund, E Fund, and Zhongou Fund [11]. Group 5: Fund Selection and Holdings - The most frequently increased funds by FOFs in Q2 2025 were primarily bond funds, with significant increases in passive bond and short-term pure bond funds [16]. - Among active equity funds, the top holdings by FOFs were Dachen Gaoxin Stock C and E Fund Kairong Mixed, both showing high external holding frequencies [16][17].