Amidst high volatility in global equity markets influenced by Middle East tensions this year, safe-haven assets like gold and silver initially surged before retreating. As of April 2, the Shanghai Composite Index declined by 0.51% year-to-date, while the CSI 300 Index fell by 2.24%.

In this turbulent environment, stable assets represented by public offering FOFs have become investors' preferred choice. The number of FOF products has steadily increased, with their scale reaching a new high since 2022. Fund-raising momentum for FOFs has intensified this year, with 49 FOFs collectively raising 67.4 billion yuan, pushing the total FOF scale beyond 300 billion yuan.

As public offering FOFs enter a new phase of development, multi-asset strategy FOFs are emerging as the dominant trend, shifting the focus from fund selection to asset allocation.

The scale of FOFs has reached a historic peak. By the end of 2025, alongside the recovery in equity markets, the public offering FOF market showed significant revival, with product numbers growing steadily. A total of 549 public offering FOFs were available in the market, with a combined scale of 244.188 billion yuan. Compared to the end of 2024, the number of products increased by 50, and the scale rose by 111.037 billion yuan.

FOF fundraising momentum has continued this year. Data shows that as of April 2, 43 newly established FOFs raised a total of 68.654 billion yuan. Among them, Bosera Yintai Selection, Zhongou Yingxin Stability, and ICBC Yintai Stability raised 5.844 billion yuan, 5.125 billion yuan, and 4.581 billion yuan, respectively.

Market performance indicates that leading FOF managers continue to dominate, while overall management scale has increased significantly compared to the previous year. Currently, 95 licensed institutions conduct public offering FOF investment businesses. Twelve managers, including E Fund Management, Fullgoal Fund, ICBC Credit Suisse Fund, Xingquan Global Fund, GF Fund, and Zhongou Fund, each manage FOF assets exceeding 10 billion yuan.

Why have FOFs grown against market trends during this volatile period? This resilience stems from their "absolute return" foundation. Data reveals that, as of April 2, hybrid FOFs numbered 556 with a scale of 289.002 billion yuan; bond FOFs totaled 30 with a scale of 23.086 billion yuan; and equity FOFs amounted to 6 with a scale of 754 million yuan.

FOF performance has exceeded expectations. Benefiting from the strong rebound in equity assets in 2025, many FOFs delivered impressive results. By the end of 2025, 452 FOFs with at least one year of operation achieved an average return of 14.9%.

Several funds stood out with notable performance. Fund reports indicate that E Fund Advantage Return A yielded 60.51% in 2025, ranking among the top-performing FOFs. ICBC Credit Suisse’s ICBC睿智进取一年A returned 31.42% for the full year 2025 and 20.65% over the past three years, providing investors with steady and substantial gains during the market recovery.

This performance is linked to FOFs' underlying asset allocation. For instance, equity-oriented hybrid FOFs, a mainstream category, indirectly hold stocks through underlying funds, typically maintaining equity positions between 60% and 90%. This approach allows them to capture equity market gains while diversifying risk with bond and money market "anchor" assets, resulting in more stable returns.

Analysis shows that top-performing FOFs do not adopt a uniform allocation strategy but instead exhibit clear thematic focuses. Some products amplify returns from specific assets by concentrating on style-specific index funds. For example, Guotai优选领航一年持有 heavily allocated to precious metal-related funds in the third quarter of 2025, including gold equity ETFs, silver-themed commodity funds, and flexible allocation funds focused on gold and jewelry, benefiting significantly during the precious metal rally.

Similarly, ICBC睿智进取一年A allocated 83.73% of its net asset value to its top ten ETFs, with bonds comprising 5.61% and bank deposits and settlement reserves accounting for 3.77%. This ETF-centric approach enabled effective broad asset allocation, capturing market upside during the equity rebound.

Meanwhile, other high-performing FOFs emphasize allocations to actively managed equity funds, particularly core products within their internal research frameworks. E Fund Advantage Return, for instance, focused on technology-oriented funds in the third quarter of 2025, targeting sectors like information technology and advanced manufacturing, reflecting a strategy to generate alpha through active management.

How are FOF moats being constructed? If "bond bull, equity bear" fixed-income-plus strategies represent FOF 1.0, then target-date and target-risk pension funds signify FOF 2.0.

Since November 25, 2022, the personal pension system has been implemented in 36 pilot cities. Public offering pension funds, including Y-share classes, are part of the personal pension product pool. By the end of 2025, 308 personal pension funds existed with a total scale of 18.57 billion yuan, including 212 pension FOFs valued at 14.327 billion yuan and 96 index funds worth 4.243 billion yuan. In 2025, target-risk pension FOFs demonstrated strong fundraising capabilities within the pension FOF issuance market.

Pension FOFs, as a strategic focus, have attracted early commitments from leading public offering managers. ICBC Credit Suisse Fund, for example, has built a comprehensive suite of target-date funds covering cohorts from the 1970s to the 1990s, alongside balanced and conservative target-risk funds catering to varying risk appetites, enabling precise investor matching. With rising public pension awareness and deeper implementation of the personal pension system, pension FOFs are poised for historic growth opportunities.

Entering 2026, increased volatility from trade policies and geopolitical factors, along with frequent price swings in precious metals and commodities, positions multi-asset strategy FOFs as the new mainstream. The core value of FOFs is evolving from "fund selection" to "multi-asset allocation hubs"—where competitiveness extends beyond deep fund manager analysis to encompass macroeconomic insight, tactical asset allocation, and global deployment capabilities, all requiring robust systemic support.

Establishing "platform-based, integrated, team-oriented" investment research systems has become essential for public offering managers. ICBC Credit Suisse Fund, for instance, has dedicated teams covering macroeconomics, fixed income, equities, and multi-asset strategies, building end-to-end expertise from asset allocation and fund selection to risk control. Concurrently, a pyramidal talent development pipeline ensures a steady supply of skilled professionals, strengthening operational foundations and amplifying the core value of public offering FOFs.

"Stability" reflects capability, while "long-term growth" represents the outcome. As public offering FOFs enter the 300 billion yuan era, leading institutions like E Fund and ICBC Credit Suisse are leveraging systematic research platforms, comprehensive risk controls, and demonstrable performance to provide reliable foundational support for investor wealth accumulation.