Core Insights - The asset management industry faces dual challenges from low interest rates and technological advancements, necessitating an upgrade in investment research capabilities to meet client needs sustainably [1][2] Group 1: Challenges in Asset Management - Insurance asset management institutions are under pressure due to the rigid cost of liabilities and rapidly declining asset yields in a low interest rate environment [2] - High-yield assets that can cover liability costs are diminishing, with non-standard fixed income assets experiencing a decline in both volume and price, complicating asset allocation [2] - The expected annual return for insurance companies from equity assets is around 8%-10%, while major indices like CSI 300 and CSI 800 have underperformed with annualized returns of only 6.4%, 5.6%, and 4.5% since 2017 [2][3] Group 2: Investment Strategies and Solutions - To enhance returns while reducing volatility, the company suggests actively seeking high-quality long-duration assets during debt restructuring and exploring new tools like REITs and ABS [4] - The shift from broad market indices to Smart Beta products that align with the risk-return characteristics of insurance funds is recommended, focusing on style factors such as dividends, value, and quality [4] - The company emphasizes the need for "asset management industrialization" to address issues like unclear positioning and unstable excess returns, moving from reliance on individual capabilities to a more systematic approach [5] Group 3: Implementation of Industrialization and Digitalization - The company has developed a "10+10" investment research training system to cultivate experienced fund managers, with over 240 professionals and more than 90 experts with over 10 years of experience [5][6] - The "MARS Factory" model is being implemented to streamline the investment research process into four core workshops, enhancing efficiency and decision-making [6] - The integration of AI and machine learning in investment processes, particularly in convertible bond pricing, is highlighted as a means to improve efficiency and quality [6]