China's 10-year government bond yields have entered a low-interest era below 2%, recently fluctuating within the 1.5% to 2% range, reducing the relative appeal of fixed-income assets. Concurrently, geopolitical conflicts have intensified global market turbulence, with various asset classes facing external shocks. In this complex environment, investors confront multiple challenges, as traditional single-asset allocation strategies struggle to meet dual objectives of enhanced returns and risk balance. Market demand is rising for multi-asset products targeting lower volatility and steady growth. "Fixed income plus" Fund of Funds (FOF), with its diversified asset allocation and flexible strategies, has emerged as a preferred solution for market uncertainty. Bosera Funds has responded by launching the Bosera Hengxin Selected 6-Month Holding Mixed FOF (Class A: 026982; Class C: 026983), available from April 1, offering investors a balanced multi-asset allocation approach.
Why are fixed income plus FOFs gaining favor? FOFs, or "funds of funds," primarily invest in other funds. Their core value lies in professional fund selection and asset allocation, achieving secondary risk diversification, reducing investor screening difficulty, and providing a one-stop investment solution. The FOF market has rebounded significantly, with both issuance numbers and management scale achieving breakthrough growth. Wind data shows FOF new issuances surged to over 90 in 2025, up sharply from 38 in 2024. The total FOF market scale exceeded 230 billion yuan, reversing a three-year decline and increasing by over 100 billion yuan from end-2024. This expansion stems from improved investor experience; FOFs demonstrated strong performance in 2025, with the Wind Partial-Debt Mixed FOF Index gaining 6.16%, outperforming the Wind Short-Term Pure Bond Fund Index (1.4%) and Wind Mixed Bond Primary Index (2.68%), while its volatility (0.35%) was lower than the Wind Partial-Equity Mixed Fund Index (2.11%).
How does the FOF model enhance fixed income plus strategies? In a low-rate, high-volatility market, FOFs empower fixed income plus approaches through multi-asset, multi-strategy, and multi-manager dimensions. Key benefits include: First, professional fund selection capability. With over 13,000 funds creating screening barriers, FOF managers leverage research teams to determine asset allocation, combining quantitative screening and qualitative research to select sub-funds, saving investors effort. Second, professional risk management. The typical FOF structure involves "master fund-sub-fund" layers, where the master fund handles allocation and selection, while sub-funds manage specific assets. This dual layer further reduces single-fund or single-asset risks. Third, scientific asset allocation. FOFs aim not for high returns in a single market but leverage diverse strategies to capture asset class returns while controlling volatility.
Why choose Bosera Hengxin Selected 6-Month Holding Mixed FOF? This product employs a preferred fund strategy, pursuing steady asset growth while controlling risk, positioning itself as a "prudent alternative to wealth management with stable appreciation." It adopts a "bond foundation" approach, flexibly allocating 5%-30% to equities. Key advantages include: 1) Proposed fund manager Zhang Dingxuan has 12.8 years of securities experience and 2.2 years of public fund management, specializing in FOF/MOM since 2013, with expertise in localized practices and diverse client portfolios. 2) The currently managed Bosera Selected Chu Hui 3-Month Holding Bond FOF has delivered positive returns since inception in September 2023, with Class A shares achieving a 10.91% net value growth rate by end-2025, outperforming the benchmark by 4.75%. It ranked first in its Galaxy Securities category for the past two years. 3) Backed by Bosera's "fixed income expertise," the product's research system spans asset, strategy, and product layers, covering domestic and international assets, with six databases supporting FOF decisions. 4) A strict risk control system features "three shields": risk budget management, high-frequency stress testing, and disciplined investment processes.
Looking ahead, proposed manager Zhang Dingxuan maintains cautious optimism toward Chinese capital markets, emphasizing policy, valuation, and fundamental advantages. Sector focus includes cyclical non-ferrous metals, dividend broad-base, tech growth, and gold micro-caps in A-shares and Hong Kong stocks, alongside opportunities in energy storage, defense, biopharma, nuclear fusion, and gaming. Convertible bonds warrant patience amid high valuations. Pure bonds favor short-duration and credit strategies with tactical trades. Gold holds allocation value amid macro uncertainties, while silver may offer higher elasticity. U.S. bonds face pressure from dollar credibility and geopolitical risks, with currency volatility noted.
In summary, amid declining interest rates, fixed income plus FOFs provide a bridge from "single deposits" to "scientific diversification" through professional allocation, strict risk control, and clear return enhancement paths. For investors seeking low-volatility growth, understanding and utilizing such tools represents a rational approach to current investment challenges.