Group 1 - The public fund industry in China is entering a critical phase of deepening reform and improving quality and efficiency, aiming for high-quality development to meet national strategies and public expectations [1] - A series of activities themed "New Era, New Fund, New Value" has been launched in Beijing to enhance investor education and protection, promote the transformation of the public fund industry, and improve its service capabilities for the real economy [1] Group 2 - The capital market in China is undergoing a profound transformation in investment philosophy, shifting from scale-oriented index investment to more refined and systematic strategy-based investment [2] - Smart Beta strategies, characterized by their unique factor investment system, are gaining attention for their transparent rules and long-term stable excess returns, making them a promising direction in the passive index investment field [2] Group 3 - Smart Beta is a rule-based factor investment strategy that systematically incorporates empirically validated effective factors into portfolio construction, aiming to achieve excess returns and reduce risk [3] - Commonly used factors in Smart Beta include value, quality, low volatility, momentum, dividends, and size [3] Group 4 - Smart Beta combines the advantages of active and passive investment, offering clear rules, high replicability, and lower management costs compared to active investment [5] - It provides better risk diversification and higher potential excess returns through non-market-cap-weighted methods [5] Group 5 - Smart Beta products can enhance returns by exposing investors to risk premiums from various factors such as value, quality, and momentum, with examples showing annualized excess returns of 4.3% and 5.0% over benchmarks for specific indices [6][7] - The strategy also reduces portfolio risk by diversifying risk sources and focusing on defensive factors like low volatility and quality [10] Group 6 - Smart Beta products offer high transparency compared to active investments, as they are designed to closely track benchmarks with clear style exposures and stock selection rules, minimizing the impact of subjective factors [12] Group 7 - Smart Beta aligns well with the high-quality development concept in China, which emphasizes quality and innovation over extensive growth, reflecting the micro characteristics of high-quality development through its core factors [13][14] - The policy environment supports Smart Beta investment, as recent regulations stress the importance of enhancing the quality and investment value of listed companies [14] Group 8 - The future of Smart Beta strategies in China looks promising, with regulatory support for high-quality index investment and increasing demand for refined investment tools, leading to the emergence of innovative Smart Beta products [15]