In recent years, the pace of rotation among major asset classes has accelerated significantly, making it difficult to sustain outperformance by relying on a single asset or investment style. Consequently, market attention has notably increased towards diversified asset allocation strategies.

It is reported that the Huaan Yingtai Stable Selection 90-Day Holding Mixed FOF has recently been launched. This product utilizes the FOF structure to cover a diverse range of assets. Beyond equities and bonds, it incorporates overseas equities, commodities, and other asset classes to diversify risk and broaden sources of potential returns.

Markets ebb and flow, with their own cycles. Over the past two years, heightened global market volatility has underscored the value of multi-asset allocation. This approach can help disperse risks associated with single assets while capturing return opportunities across different markets, thereby improving a portfolio's risk-return profile. Harry Markowitz, a pioneer of modern portfolio theory and Nobel laureate in economics, famously emphasized that "diversification is the only free lunch in investing."

Transitioning from single-asset to multi-asset investing has become a more optimal solution, with FOFs serving as a crucial vehicle for implementing such diversified asset allocation. The newly launched Huaan Yingtai Stable Selection 90-Day Holding Mixed FOF reportedly operates using multi-asset and risk parity strategies, positioning itself as a low-volatility, stable multi-asset FOF.

The product aims for comprehensive asset coverage. In addition to stocks and bonds, it can invest in assets such as U.S. equities, Japanese equities, German equities, gold, soybean meal, silver, non-ferrous metals, U.S. Treasuries, and REITs.

The performance benchmark for the Huaan Yingtai Stable Selection 90-Day Holding Mixed FOF is set as: "ChinaBond Composite Total Return Index * 80% + CSI 300 Index * 5% + Hang Seng Index * 5% + Shanghai Gold Exchange Au99.99 Spot Contract Price * 5% + Demand Deposit Benchmark Rate * 5%".

In terms of investment strategy, the Huaan Yingtai Stable Selection 90-Day Holding Mixed FOF uses a risk parity quantitative model as its core framework to allocate across multiple assets. This is supplemented by a tactical satellite strategy for potential enhancement. The strategy anchors on low correlation, meticulously balancing the risk contribution of various asset classes. While maintaining a diversified and dispersed allocation, it seeks to capture upside potential while preparing defensively for short-term volatility.

Specifically, the risk parity model determines the allocation structure by calculating the positions required for each asset to contribute equally to portfolio risk, with monthly rebalancing to maintain this equilibrium. Concurrently, a satellite strategy is employed to further mitigate downside risks during extreme market events and capture return elasticity from more trend-driven upward opportunities, enhancing the portfolio's adaptability across different market environments.

The Huaan Yingtai Stable Selection 90-Day Holding Mixed FOF is to be managed by Yang Zhiyuan, who brings 14 years of experience in securities and fund management, including 7 years of public FOF investment experience. She possesses extensive capability in multi-asset analysis and practical portfolio management experience.

Furthermore, the Portfolio Investment Department at Huaan Fund will oversee the product's operation. It is understood that this team brings together professional investment research talent across multiple fields, with strong collaborative capabilities. Operating under a systematic asset management model, the team leverages strategic asset allocation proportions and tactical timing, allowing members to fully utilize their respective research strengths in equities, fixed income, commodities, and overseas markets, aiming to improve the product's risk-return profile.

Risk Disclosure

All investments involve risk. Fund management companies do not guarantee that this fund will be profitable or assure a minimum return. Past performance of a fund is not indicative of its future results. The performance of other funds managed by the fund manager does not guarantee the performance of this fund. The operational history of funds in China is relatively short and may not reflect all stages of market development. Fund returns are subject to volatility risk. Investors should exercise caution. For details, please carefully read the fund's contract, prospectus, and other legal documents.

This fund is a mixed fund of funds (FOF). Its risk and expected return are higher than bond FOFs and bond funds, higher than money market FOFs and money market funds, but lower than equity FOFs and equity funds. For each fund unit, this product has a minimum holding period of 90 days. Investors can only submit redemption or conversion requests on or after the business day following the end of the minimum holding period. This entails liquidity risk, as redemptions cannot be processed during the minimum holding period, and the risk of potentially significant net asset value fluctuations. The product's risk rating is R3 - Medium Risk. All investments involve risk.

Fee Structure

Subscription/Purchase Fees (where M represents subscription/purchase amount):

Class A Shares: M < 5 million yuan, 0.5%; M ≥ 5 million yuan, 1,000 yuan per transaction.

Class C Shares do not charge subscription/purchase fees.

Redemption Fees for both Class A/C Shares (where Y represents holding period): Y < 180 days, 0.50%; Y ≥ 180 days, 0%.

Management Fee: 0.60% per annum.

Custodian Fee: 0.15% per annum.

Class A Shares do not charge a sales service fee. Class C Shares Sales Service Fee: 0.30% per annum.

No management fee is charged on the portion of this fund's assets invested in funds issued or managed by the fund manager of this fund.

No custodian fee is charged on the portion of this fund's assets invested in funds custodied by the custodian of this fund.

The above fee rates apply to non-pension clients. If an investor has multiple subscriptions/purchases within a single day, applicable fees are calculated separately for each transaction.