In the past year, while AI-related assets such as optical modules and storage have continued to rise, the high volatility behind the gains has made many investors apprehensive—tempted by the upswings but anxious during downturns. Concurrently, domestic interest rate benchmarks have been steadily declining, leading to thinner bond yields. Overseas geopolitical conflicts persist, and the Federal Reserve's rate cut expectations have been fluctuating, making even the traditional stock-bond-gold allocation appear less resilient. In this context, a growing number of investors are turning their attention to diversified asset allocation.

Cohen & Steers Closed-End Opportunity Fund (FOF), with its inherent diversified allocation characteristics, is garnering increasing focus. Wind data shows that as of May 27, 77 new FOF products have been launched this year, with a total issuance scale of 99.436 billion yuan. This represents a 313.61% increase compared to the 24.041 billion yuan during the same period last year. In terms of performance, the Partial Equity Hybrid FOF Fund Index has gained 40.59% over the past year, outperforming major assets like the CSI All Share Index, the Nasdaq 100, and London Gold. Its maximum drawdown of -9.87% also surpasses that of any of the aforementioned assets. (Data source: Wind. The representative index for partial equity hybrid funds refers to the Wind Partial Equity Hybrid FOF Index. The one-year gains and maximum drawdowns for the CSI All Share Index, Nasdaq 100, and London Gold spot are 35.34%/-10.55%, 39.97%/-12.12%, and 35.01%/-19.10%, respectively.)

Diverging Economic Cycles Amplify Volatility, Diversification Strengthens Portfolio Resilience

"The current global macro landscape exhibits significant divergence characteristics. China is in the early stages of economic growth and rising inflation, the US and Eurozone are grappling with stagflation, while Japan is in a recovery phase with diminishing momentum." In the view of Jiang Hong, the designated portfolio manager for the Invesco Great Wall Yingjing Active Allocation 6-Month Holding FOF, the differing economic development cycles among countries create conditions for diversified allocation.

In fact, influenced by factors such as shifting economic cycles and geopolitical conflicts, the volatility of single assets is intensifying. To enhance portfolio resilience while balancing returns and volatility control, it is necessary to incorporate assets like overseas equities and commodities on top of the traditional stock-bond mix. This leverages the low correlation between different assets to create a hedging effect.

Taking the past decade as an example, the correlation coefficients between A-shares and bonds, gold, US stocks, and Hong Kong stocks were only -0.185, 0.108, 0.134, and 0.554, respectively. This indicates a low correlation in price movements. Diversified allocation not only helps mitigate the impact of single-asset volatility on overall returns but also has the potential to expand sources of return. (Data source: Wind. Representing the performance of A-shares, bonds, gold, US stocks, and Hong Kong stocks with the CSI All Share Index, CSI Aggregate Bond Index, COMEX Gold, S&P 500, and Hang Seng Index, respectively. Data as of May 27, 2026.)

Information shows that the newly launched Invesco Great Wall Yingjing Active Allocation 6-Month Holding FOF will adopt a partial equity hybrid FOF positioning, maintaining an equity allocation between 60% and 85%. While actively seeking potential opportunities in equity assets, it can also invest in assets such as Hong Kong stocks, overseas markets, and commodities, aiming to enhance the portfolio's risk-return profile through diversified allocation.

Eight-Quadrant Framework + Dynamic Risk Parity for an Enhanced All-Weather Strategy

For a multi-asset allocation FOF, selecting different assets effectively is crucial, as different asset classes perform differently across various stages of the economic cycle. In this regard, the classic All-Weather strategy divides the economic cycle into four quadrants, each with corresponding dominant assets. For instance, growth stocks and credit bonds tend to outperform in environments where economic growth exceeds expectations; stocks and commodities align better with phases of higher-than-expected inflation; long-duration government bonds are suitable for periods of lower-than-expected inflation; and gold and bonds are key focuses in environments where growth falls short of expectations. This implies that effective diversified allocation first requires understanding the current economic phase, followed by a top-down allocation across different assets.

Building on the classic All-Weather strategy, the Invesco Great Wall FOF team has enhanced it. By incorporating indicators such as net expectation gaps and PMI/PPI, they have constructed an eight-quadrant All-Weather 2.0 framework. Based on historical statistics and dual verification of win rates and risk-reward ratios, they identify dominant assets under different scenarios to form an asset pool. Subsequently, they assign risk contribution targets to each of the eight quadrants. Combining these risk contributions with asset volatilities yields a "risk parity" allocation ratio. The portfolio management process involves dynamic adjustments and tactical offensives, meaning overweighting dominant assets and underweighting others based on model signals. Furthermore, in risk management, all position adjustments ensure compliance with the fund's contractual constraints regarding asset allocations.

It is understood that Jiang Hong, the designated portfolio manager for the Invesco Great Wall Yingjing Active Allocation 6-Month Holding FOF, has extensive FOF management experience. Information indicates that, to date, Jiang Hong possesses 16 years of experience in the securities and fund industry, with 9.7 years of investment management experience. She excels in combining top-down asset allocation with bottom-up underlying fund research for FOF portfolio construction. Regarding investment performance, the partial equity FOF she manages, Invesco Great Wall Zhenpin Three-Month Holding, has diversified into assets including fixed income, equities, overseas investments, and gold ETFs in recent years. It has captured opportunities in domestic and international tech themes, Hong Kong market recovery, and rising gold prices, achieving a 26.27% return over the past year, outperforming the benchmark's gain over the same period. (The fund manager began managing this fund on December 26, 2024. Fund performance and benchmark data source: Wind. The one-year benchmark for Invesco Great Wall Zhenpin Three-Month Holding is 23.17%, as of May 27, 2026.)

Looking ahead at the outlook for various assets, Jiang Hong stated that technology is expected to remain a market theme, resource-related products and pro-cyclical sectors will continue to offer segmented opportunities, and dividend-yielding stocks serve as a periodic stabilizer for the portfolio. Regarding bonds, against a backdrop of ample liquidity, the yield curve is expected to experience a recovery, with long-term bonds offering relatively high value. While credit bonds may have limited capital gain potential, carry strategies offer higher certainty. As for commodities, with the marginal easing of war impacts, commodity prices may partially recover from previously pessimistic expectations, with relative optimism for electrolytic aluminum, rare earths, and gold.