Since the outbreak of conflict in the Middle East, financial markets have experienced repeated fluctuations driven by changing geopolitical dynamics, heightening uncertainty. In such complex and volatile conditions, building a relatively balanced portfolio through diversified allocation often proves more prudent than concentrating on a single asset class. In recent years, FOFs with diversified allocation features have gained increasing popularity among investors.

According to data from the Asset Management Association of China, as of the end of February, the total assets under management of public FOFs with asset allocation characteristics reached 315.714 billion yuan, up 12.28% from 281.178 billion yuan at the end of January. This growth rate leads among various fund categories. It has been reported that Invesco Great Wall recently added a new product to its FOF lineup—the Invesco Great Wall Hexi Antai 3-Month Holding FOF (Codes: Class A 026912; Class C 026913) is set to launch. This product emphasizes diversified asset allocation, aiming to enhance returns while controlling drawdowns to improve the investor experience.

Information shows that the Invesco Great Wall Hexi Antai FOF primarily invests in fixed-income assets, with 5%–30% of its portfolio allocated to equity assets. In addition to domestic stocks and equity-focused funds, it may also invest in Hong Kong Stock Connect-listed stocks, QDII funds, Hong Kong mutual recognition funds, and commodity funds (including commodity futures funds and gold ETFs). The strategy seeks to leverage the low correlation among different assets to create hedging effects and improve risk-adjusted returns. Data indicates that over the past decade, the correlation coefficients between A-shares and bonds with A-shares, U.S. stocks, Hong Kong stocks, Japanese equities, and gold were -0.184, -0.052, -0.169, -0.115, and 0.017, respectively, suggesting low price movement correlations that support the implementation of this strategy. (Data source: Wind, using the CSI Aggregate Bond Index, CSI All Share Index, S&P 500 Index, Hang Seng Index, Nikkei 225, and LBMA Gold Price to represent the respective assets, as of April 1, 2026.)

Proposed fund manager Zhao Sixuan stated that the primary objective of the fund’s operation will be to control maximum drawdown, followed by managing volatility, with the goal of achieving long-term, steady appreciation of fund assets. Zhao has eight years of experience in securities and fund management, including 5.8 years in investment management. In his investment approach, he specializes in a cyclical perspective, preferring to position early in industries, assets, and sectors with potential upward inflection points. This strategy aims to identify value-priced assets while avoiding significant drawdowns to enhance the portfolio’s risk-return profile.

Zhao’s strategic framework is evident in the持仓 changes of the Invesco Great Wall Junfeng Balanced Pension Three-Year FOF under his management. This product maintains an equity allocation between 45% and 60%, covering domestic stocks, equity funds, Hong Kong Stock Connect stocks, QDII funds, and commodity funds, reflecting flexibility and diversity. Periodic reports show that the fund’s previous持仓 adjustments anticipated market shifts, demonstrating the manager’s "cyclical thinking" and early positioning ability. For instance, in early 2024, the portfolio increased exposure to dividends and non-ferrous metals, mitigating the impact of small-cap style drawdowns; in August 2024, it reduced dividend holdings to preemptively position for a recovery in the property sector; in Q2 2025, it added exposure to Hang Seng Tech to capture growth rebound opportunities; and in October 2025, it proactively reduced TMT allocations while early positioning in coal and increasing holdings in coal and Dow Jones ETFs. Since Zhao began managing the fund on July 26, 2023, its net value has accumulated a gain of 18.86%. (Data source: Fund performance from Wind, compared to a benchmark gain of 21.78% over the same period, as of April 1, 2026;持仓 changes compiled from fund periodic reports, as of December 31, 2025.)

Additionally, the overall strength of the fund management company will support the new fund’s operations. On one hand, Invesco Great Wall’s pension and asset allocation department has been operational for many years, specializing in FOF and advisory strategy development, macro asset allocation research, and fund investment management. As of the end of 2025, the team members average 11 years of investment experience, primarily from traditional absolute return fields such as large insurance companies, insurance asset management, pension management, bank wealth management, and securities asset management, providing a solid foundation for FOF strategy execution and asset allocation. On the other hand, as a leading multi-asset management expert in equity investment, Invesco Great Wall boasts a range of actively managed equity, fixed-income, quantitative, and ETF funds with clear styles and strong performance, offering high-quality underlying assets for FOFs.

Looking ahead, Zhao Sixuan expressed a positive outlook on the equity market, highlighting three key themes under long-term structural tailwinds: technology, resource commodities, and pro-cyclical sectors, while emphasizing the stabilizing role of dividend assets. In fixed income, given the ongoing economic transition, long-term bonds are likely to experience range-bound fluctuations, presenting tactical opportunities during adjustments, alongside carry trade strategies. For commodities, accommodative global liquidity conditions, combined with supply disruptions from Middle East tensions and resource nationalism, provide price support, though demand realization remains pending.