Core Viewpoint - The public fund industry is at a new historical starting point in 2025, with a series of reform plans aimed at enhancing research and investment capabilities, improving service to the real economy, and optimizing the industry development ecosystem, all centered around the principle of "investor-centric" reform [1] Group 1: Company Performance and Achievements - As of September 2025, over 97% of all products under the company have profitable holders, with profits exceeding 80 billion and dividends over 6 billion this year [1] - The company has consistently ranked first in absolute returns among large equity fund companies over the past 10, 7, and 5 years [5] - The fixed income investment performance has been stable, ranking in the top 20% for the past year, top 33% for the past three years, and top 25% for the past five years [5] Group 2: Product Innovation and Development - The company has developed nine major fund categories, including open-end funds, index funds, and public REITs, to meet diverse investor needs [2] - Recent product innovations include the launch of free cash flow ETFs, A500 enhanced ETFs, and floating fee rate products, along with initiatives in cross-market bond business [2] - The company is actively enhancing its product matrix to cater to different investment demands, focusing on areas like pension funds and public REITs [2] Group 3: Research and Investment Capability - The company emphasizes the importance of investment management capabilities as a core competitive advantage, advocating for a "platform-based, integrated, multi-strategy" research and investment system [3] - A centralized research platform combined with a diversified investment team has been established to enhance research efficiency and decision-making quality [4] - The investment team operates under a model that integrates research and investment, ensuring effective conversion of research outcomes into investment strategies [4] Group 4: Risk Management and Compliance - The company prioritizes risk management as a vital aspect of long-term development, continuously improving its internal control systems and risk management strategies [6] - A comprehensive risk management framework has been established to monitor and control investment risks throughout the entire process [6] - The company has successfully navigated significant market fluctuations over its 27-year history due to its robust compliance and risk management systems [6] Group 5: Commitment to High-Quality Development - The company is committed to building a first-class investment institution, guided by the principle of being investor-centric and focusing on long-term goals [7] - The company aims to respond to reforms with a commitment to its mission, striving for high-quality development in the public fund industry [7]

Group 1 - The core idea emphasizes the importance of foundational knowledge in investing, particularly in mutual funds, to facilitate easier entry into the investment landscape [2] Group 2 - Investment funds focused on gold can be categorized into three main types: those tracking domestic spot gold through ETFs and linked funds, which follow the Shanghai Stock Exchange's gold spot contracts. These funds are characterized by low trading costs and closely track domestic gold price movements [3]

Core Concept - The article emphasizes the importance of understanding the "collaboration" between assets in investment allocation, which is mathematically represented by "correlation" [3][4]. Asset Allocation Principles - Ideal investment portfolios should consist of assets with varying correlations: assets with a correlation close to +1 move together, those with a correlation close to -1 move inversely, and those with a correlation close to 0 operate independently [4]. - The modern portfolio theory proposed by Nobel laureate Harry Markowitz suggests that scientific diversification can significantly reduce risk without sacrificing returns [4]. Mathematical Framework - For perfectly negatively correlated assets (correlation of -1), the allocation ratio should be inversely proportional to their volatility. If two funds have the same volatility, equal allocation is appropriate [5][7]. - If the volatilities differ, the allocation should favor the asset with lower volatility. For example, if Fund A has a volatility of 10% and Fund B has 30%, the optimal allocation would be 75% in Fund A and 25% in Fund B [7]. - For assets with a correlation close to 0, the allocation ratio should be inversely proportional to the square of their volatility. This allows for optimization of the risk-return profile even among uncorrelated assets [10][13]. Investment Insights - Including negatively correlated assets in a portfolio can effectively reduce overall volatility. While perfectly negatively correlated assets are rare, seeking low or negatively correlated assets remains a valid strategy for optimizing investment portfolios [9]. - The article illustrates that even with uncorrelated assets, appropriate weight allocation can enhance the risk-return ratio. For instance, a combination of five uncorrelated assets can reduce volatility significantly compared to individual assets [15]. Addressing Concerns about Returns - The article argues that proper asset allocation does not diminish returns; rather, it can stabilize and enhance them. The key is to select high-performing assets rather than diversifying for the sake of it [17]. - Examples provided include combining U.S. stocks with A-shares, both of which have long-term annualized returns of around 8-10%, resulting in a stable combined return while reducing volatility [17]. Practical Guidelines for Portfolio Construction - Step 1: Diversify across major asset classes such as stocks (high long-term returns, high volatility), bonds (stable returns, low volatility), and commodities (inflation hedge) [21]. - Step 2: Diversify by region and strategy, investing in various markets and styles to mitigate risks [21]. - Step 3: Regularly rebalance the portfolio to maintain the desired asset allocation, selling portions of assets that have appreciated significantly and buying those that have declined [21].

Core Concept - The article emphasizes the importance of asset allocation and its mathematical principles to achieve stable investment returns [2][3]. Group 1: Understanding Asset Collaboration - Asset allocation relies on understanding the "collaboration relationship" between assets, defined by their correlation coefficients [3]. - Ideal investment portfolios should consist of assets that work together effectively, akin to a well-functioning team [3][4]. - Different types of asset collaboration include: - Same profession (correlation close to +1): assets move together [4]. - Perfect partners (correlation close to -1): assets move inversely, providing balance [4]. - Each performing their role (correlation close to 0): assets operate independently but contribute to a common goal [4]. Group 2: Mathematical Principles of Asset Allocation - Asset allocation is governed by strict mathematical formulas, not arbitrary distribution [5]. - For perfectly negatively correlated assets, the allocation ratio should be inversely proportional to their volatility [7]. - If two assets have different volatilities, the allocation should favor the asset with lower volatility [7]. - The inclusion of negatively correlated assets can significantly reduce portfolio volatility and achieve stable returns [9]. Group 3: Addressing Concerns About Returns - A common concern is whether diversifying investments will dilute returns; the article argues it will not if the right assets are chosen [16]. - Examples illustrate that combining high-performing assets can maintain returns while reducing volatility [17][19]. - The essence of effective asset allocation is to select high-return assets with low correlation to achieve better overall performance [20]. Group 4: Practical Guidelines for Building a Portfolio - The first step in constructing a portfolio is to diversify across major asset classes [22]. - The second step involves regional and strategy diversification, ensuring exposure to various markets and investment styles [22]. - Regular rebalancing of the portfolio is essential to maintain the desired asset allocation and optimize returns [23]. Group 5: Case Studies and Examples - The article provides examples of asset combinations, such as gold and stocks, which can hedge against market volatility [21]. - It highlights the contrasting behaviors of U.S. stocks and oil prices, suggesting that oil can serve as a hedge against stock market risks [21]. - The article references Bridgewater's approach of finding multiple uncorrelated sources of returns to minimize risk [21]. Group 6: Conclusion - Mastering asset allocation is presented as a crucial skill in navigating the capital markets, emphasizing that there are no free lunches without this knowledge [26].