Since the beginning of this year, market volatility has increased, but FOF funds with asset allocation attributes have once again attracted investors’ attention with their relatively controllable fluctuations. Zheshang Fund FOF Investment Chief Supervision Yu believes that FOF funds can provide investors with professional asset allocation solutions, and improve the holding experience by optimizing fund products.
“Strategy + Tactics” to achieve the advantages of portfolio management
“Many people have a misunderstanding of FOF investment, thinking that choosing a good fund manager can win. In fact, for FOF products, a good fund manager is just a configuration tool. Each fund manager has his own style. And in the field, the core task of FOF fund managers is to grasp the allocation of various assets.” Guan Yu said.
Guan Yu, who has 13 years of experience in the industry, was the head of strategic asset allocation and quantitative investment in the asset management department of Ping An Property & Casualty Insurance, with a management scale of over 300 billion yuan. Years of investment experience in asset allocation and secondary market make him good at all-weather asset allocation from a combination of qualitative and quantitative investment research perspectives. These assets include A shares, Hong Kong stocks, US stocks, fixed income, quantitative hedging, commodities , REITs, etc.
In Guan Yu’s view, as a combination product, FOF should provide customers with asset allocation solutions. In this regard, Guan Yu adopts the top-down investment framework of SAA-TAA.
The first is strategic asset allocation (SAA) to earn beta money. According to the liability duration, risk budget and income budget of the product, based on quantitative statistical analysis of medium and long-term market data, combined with various asset allocation models, Guan Yu determines the rational allocation center of various assets.
Secondly, according to fundamental analysis, price comparison between various assets, cycle theory, etc., through timing or subjective judgment, a tactical asset allocation system (TAA) is constructed. “Once the risk comes, the allocation of major assets can play a hedging role, diversify systemic risks, and may provide some additional benefits.” Guan Yu said.
In the end, it is to choose specific varieties with excess returns, or select excellent managers with relative returns, and increase product returns by obtaining alpha.
“Qualitative + Quantitative” Preferred Fund Manager
In terms of fund manager selection, Guan Yu adopts a combination of qualitative and quantitative methods, sums up the “1F+6P” method, comprehensively analyzes the investment ability of managers, and deeply analyzes the core elements that support the sustainability of their performance, including the company’s There are seven dimensions of qualification, investment philosophy, investment process, investment team, personal characteristics, investment products, and investment performance.
“If there is a style drift in the fund manager or if there are better fund manager products available in the same dimension, then we may make a reposition. Generally speaking, the fund performance drawdown is not the primary consideration for rebalancing. If this happens , we will first conduct an interview with the fund manager to determine whether the reason behind it is the failure of the strategy or other factors. If it is no longer in line with our expectations, we will adjust the position.” Guan Yu said.
In addition, Zheshang Fund, as a rare fund company in the industry that integrates “AI” elements into its development genes, its FOF products also model and analyze fund companies, products and fund managers based on big data and AI technology. Learning and other methods to tag management of funds, in-depth analysis and mining of various portraits.
Constructing the FOF combination “ballast stone”
Looking forward to the market outlook, Guan Yu is more optimistic about fixed income assets, and believes that such assets may provide better coupon income and have a thicker safety pad. In addition, from the perspective of external market performance, some commodity funds can also be added to hedge the risk of the entire portfolio and reduce volatility.
It is reported that the Zheshang Zhipei Mövenpick One-Year Holding Term Bond (FOF), which is to be managed by Guan Yu, will enter the sale period on June 13. The fund is a relatively scarce bond-based FOF fund in the current market, trying to obtain relatively stable absolute returns for investors in a volatile market.
“The number of domestic funds has exceeded 9,000. FOF funds can provide investors with professional asset allocation solutions. By optimizing funds, we can reduce volatility and improve holding experience.” Guan Yu said that compared with overseas markets, my country’s FOF funds have just started. , there is a lot of room for development.Return to Sohu, see more
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