(Original title: FOF development has entered the fast lane, Guangfa Yuexiang has a one-year holding period and will be on sale from January 6 next year)
FOF, as a one-click configuration solution for fund investment, will finally usher in rapid growth in 2021 after more than three years of testing. Wind data shows that as of October 30, the number of FOFs established this year has increased by 43.46% from the end of 2020, and the overall scale has increased by 106.98%.
Compared with other public offering products, FOF is characterized by the pursuit of a better risk-return ratio through top-down asset optimization and bottom-up fund optimization. According to Wind statistics, as of November 30, the average return rate of FOF in the whole market in the past year and the past two years has reached 10.02% and 35.27%, respectively. Over the same period, the rise and fall of the Shanghai and Shenzhen 300 Index were -2.99% and 26.21%. At the same time, the average retracement of the FOF in the past year and the past two years was -6.05% and -6.33%, respectively, and the maximum retracement of the CSI 300 in the same period exceeded -18%.
FOF products involve multi-asset, multi-strategy investment operations. The support of the company’s platform and the cooperation of the investment and research team are extremely important factors. GF Fund is one of the earliest companies in the industry to deploy asset allocation business, with leading investment and research teams and rich experience in firm offerings. Currently, the investment research team has a total of 15 people, including 9 investment managers and 6 researchers. Among them, Yang Zhe, general manager of the Asset Allocation Department, has accumulated rich practical experience in FOF investment and fund portfolio management.
Starting from January 6, 2022, the new fund to be managed by Yang Zhe-GF Yuexiang FOF (014665) with a one-year holding period will be issued in the direct sales channels of China Everbright Bank and GF Fund. According to China Merchants Securities Research, Yang Zhe is a domestic FOF and asset allocation practitioner, and has a complete and solid asset allocation and fund research system. She focuses on product risk control and is good at creating cost-effective portfolios, representing 100% annual and quarterly product win rates. Buying and holding on any day for more than 6 months has a 100% probability of a positive return.
Outstanding cost performance of FOF income risk
In recent years, the number of public funds has increased, and the difficulty for investors to choose has also increased. According to data from the Fund Industry Association, as of the end of October this year, the number of public offering funds under 151 fund managers was close to 9,000, far exceeding the number of A-share listed companies.
In this context, FOF, a sub-category of specialized investment funds, has entered the fast lane of development. On the one hand, the FOF team has a more comprehensive understanding of fund managers’ concepts, methods, and capabilities through qualitative research on fund managers. On the other hand, the team uses scientific research methods to analyze the risk-return characteristics and performance attribution of fund products, and can more accurately judge the sustainability of fund performance and the level of excess returns in the future.
It is worth noting that the advantage of FOF is not only the use of professional fund evaluation and methods to select funds, but also the ability to allocate assets based on a macro perspective. Nobel Prize winner Harima Kowitz once said: “Diversification of asset allocation is the only free lunch for investment.” In other words, FOF can help capture the current period by dynamically adjusting the ratio of major types of assets. For assets with investment value in the market, the negative correlation of different assets can be used to smooth fluctuations and reduce the overall volatility risk of the portfolio.
Since the beginning of this year, the differentiation of the A-share market has intensified, and FOF’s advantages in controlling risks and smoothing fluctuations have been further demonstrated. According to Wind statistics, as of November 30, the average rate of return of the FOF of the whole market in the past year reached 10.02%, while the Shanghai and Shenzhen 300 Index fell by -2.99% during the same period. At the same time, the average retracement of the FOF in the past year was -6.05%, and the largest retracement of the CSI 300 in the same period exceeded -18%.
Relying on the overall relatively stable performance, public FOFs have successively been recognized by investors. In the past, investors were accustomed to paying attention to the performance and ranking of funds, but with the increase in investment practices, investors are more and more concerned about the drawdown data, and they will also weigh the risks they are willing to take to obtain a certain expected return. As a result, risk-return is better than the prominent FOF. It will usher in rapid development in 2021, and the scale has doubled from the end of last year.
The integration of investment and research shows teamwork
Compared with general funds, the management and operation of FOF relies more on team support and professional division of labor. As early as 2013, GF Fund took asset allocation as a strategic business development and established a complete talent team. Among them, investors have accumulated rich experience in FOF, portfolio management, fund investment advisory, etc.; researchers have accumulated systematic research methods in qualitative and quantitative aspects, and are good at grasping the style positioning of funds and excess attribution.
“We are a Global team. Team members have diversified backgrounds in asset allocation, quantitative research, fund research, etc., and provide fund managers with multi-dimensional research support.” According to Yang Zhe, general manager of the Asset Allocation Department of GF Fund, in recent years, GF The fund continues to introduce domestic and overseas asset allocation elites, and builds a scientific and professional investment-research integration mechanism to provide comprehensive support for the investment management of different products and different strategies.
In addition to a high-quality investment and research team and an integrated investment and research mechanism, the third feature of GF Fund in the asset allocation business is a powerful quantitative system. “We have established a systematic research system in SAA strategic configuration, TAA tactical adjustment, comprehensive fund evaluation, etc.” Yang Zhe said, drawing on the best fund evaluation systems at home and abroad, combined with practical experience in the domestic market , GF Fund has established a comprehensive evaluation system for GFund funds, including both quantitative and qualitative, and hopes to provide investment support with sophisticated scientific calculations and in-depth research.
Relying on a strong investment team, GF Fund has deployed FOF and investment advisory portfolios with different risk and return levels and diversified strategies to meet the investment needs of different customers. GF Yuexiang one-year holding period FOF (014665) issued on January 6, 2022, its investment in stock funds (including stock index funds) accounts for 0%-30% of the fund’s assets, and it is proposed to be a fund manager It is Yang Zhe.
It is understood that the product will select high-quality funds in different asset classes through a combination of quantitative and qualitative methods on the basis of strictly controlling risks and maintaining asset liquidity, combining the risk-return objectives of the funds and the market environment to rationally allocate weights. Pursue the long-term steady growth of fund assets.