Multi-asset allocation helps achieve steady growth, Fuguo Smart Stable FOF launches today!

Multiple institutions’ data estimates that by 2026, the scale of resident deposits maturing could reach hundreds of trillions of yuan. Against the backdrop of a continued decline in market interest rates and increasing uncertainties in traditional investment channels, finding a “new frontier” for this portion of funds seeking stable returns has become a market focus.

In this context, a publicly offered product designed to provide low volatility and steady returns has emerged. The GuoFeng Fund’s GuoFeng Smart Stable 120-Day Holding Period Hybrid Fund of Funds (FOF) (hereinafter referred to as “GuoFeng Smart Stable FOF”) (Class A: 026910, Class C: 026911) officially entered its initial fundraising phase today (March 12). The product is positioned as a bond-oriented hybrid FOF, managed by Multi-Asset Investment Director Zhang Ziyan, aiming to offer a defensive yet flexible allocation tool in the current complex market environment through a strategy of “bond foundation with diversified enhancement.”

Doubling in Two Years, Bond-Oriented Hybrid FOF Becomes a New Favorite for Low-Volatility Allocation

Driven by low interest rates and increased market volatility, single-asset strategies are increasingly unable to meet investors’ core needs for wealth preservation and appreciation. As a “professional buyer” of asset allocation, FOF funds, with their inherent advantages of diversification and smoothing volatility, are gradually taking center stage.

Among them, the rise of bond-oriented hybrid FOFs is particularly notable. Wind data shows that the scale of such products surged from 70.8 billion yuan at the beginning of 2024 to over 149.1 billion yuan by the end of 2025, accounting for more than 60% of the total public FOF market. The annual growth in 2025 set a new record. This rapid increase clearly reflects the urgent demand among the public for more risk-adjusted, stable allocation tools under the current market landscape.

Looking at historical performance, bond-oriented hybrid FOFs have also demonstrated their unique allocation value. Wind data indicates that from early 2018 to the end of 2025, the Wind Bond Hybrid FOF Index gained a total of 30.47%, significantly outperforming the AAA certificate of deposit index and money market fund index by 25.14% and 17.34%, respectively. It also outperformed the CSI 300 index by over 15 percentage points during the same period, showcasing the advantage of “keeping pace during rises and buffering during declines.”

“Core-Plus” Dual-Drive, Building a Multi-Asset Allocation System

Faced with market uncertainties, how can investors build a portfolio with more certainty? GuoFeng Smart Stable FOF offers an answer with a “Core-Plus” allocation framework.

According to reports, the “core” part of the fund, serving as the “ballast,” will mainly consist of high-quality bond funds. The focus will be on short- to medium-duration bonds with medium to high credit ratings. The former aims to dampen the portfolio’s sensitivity to interest rate fluctuations and control net value declines when rates change; the latter seeks to avoid credit default risks by strictly adhering to credit bottom lines and avoiding credit downgrades.

The “plus” portion retains an allocation of 5% to 30% in equity assets and may also include commodities, QDII, public REITs, and other diversified assets to capture structural opportunities in different markets and enhance the portfolio’s return flexibility. The fund manager will dynamically adjust the proportion and direction of the “plus” assets based on macroeconomic cycles and market conditions. For example, during an economic recovery, equities may become the main source of returns; when global macro trends shift, assets like gold and industrial metals, which have low correlation with stocks and bonds, could provide effective hedging and supplementation due to their unique driving logic.

Experienced FOF Veteran Leads, Proven Performance Validates Allocation Skills

The increasing complexity of asset classes demands higher research depth and risk control capabilities from fund managers. GuoFeng Smart Stable FOF’s proposed manager, Zhang Ziyan, is a seasoned veteran in multi-asset allocation. As the Director of Multi-Asset Investment at GuoFeng Fund, Zhang has extensive research experience and practical expertise across bull and bear markets, managing a product line that covers from bond-biased, balanced to equity-oriented risk profiles.

Zhang’s investment philosophy can be summarized as “precise asset allocation and deep selection of underlying funds.” He believes that FOF investments should optimize risk-return ratios through scientific macro-asset allocation, combined with a screening mechanism that integrates quantitative and qualitative methods to identify high-quality sub-funds capable of generating excess returns. In practice, he always prioritizes “risk control over pursuit of returns.”

His investment approach is validated by past performance. For example, as of December 31, 2025, the GuoFeng Zhupu Stable Progress 12-Month Holding FOF (Class A) achieved a 9.06% return in the past year, compared to a benchmark of only 2.19%, significantly outperforming. Similarly, the GuoFeng Xinwang Stable Retirement One-Year Holding A outperformed the benchmark in four out of five full years, demonstrating strong drawdown control. The GuoFeng Xinwang Balanced Retirement Three-Year Holding A, a balanced product, further exemplifies his allocation wisdom across different market conditions—reducing equity exposure and increasing defensive assets during market downturns in 2022 and 2023, and catching up during rebounds in 2024 and 2025.

Looking ahead to 2026, Zhang Ziyan believes that in the context of profound changes in the global macro landscape and increasing correlations among assets, the era of “lying flat” with single assets is over. Diversified and refined asset allocation to smooth volatility and accumulate gradually will be an effective path to achieving long-term steady returns.

As investor risk appetite shifts and asset allocation concepts become more widespread, the market’s demand for diversified FOF products that balance stability and flexibility is likely to continue growing. The launch of GuoFeng Smart Stable FOF may further enrich the risk management toolkit of public funds and offer investors new options for stable allocation.