Amidst current market fluctuations and intensified sector rotations, the performance of various single-asset classes has shown significant divergence and volatility. Against this backdrop, some FOF products focusing on diversified allocation have demonstrated independent strength, reaching new highs in their net asset values.

On April 22, the net asset value of Guotai Minze Balanced Pension Target Three-Year Fund Y reached 1.2228 yuan, setting a new record high. Since its strategic optimization and upgrade in 2025, the fund's operational performance has steadily improved, maintaining a consistently robust overall trend.

The impressive net asset value performance is no coincidence. This analysis explores what continuous new highs signify for FOF products.

First, strong risk resistance enhances the holding experience. Since April 2025, influenced by external factors such as tariff disputes and geopolitical conflicts, capital market volatility has increased with accelerated sector rotations, making structural opportunities difficult to capture. In this environment, concentrating on single assets can lead to significant fluctuations.

FOFs mitigate single-asset volatility through secondary diversification across products, categories, and styles, serving as stabilizing anchors in turbulent markets. Even during short-term market adjustments and minor portfolio drawdowns, these funds can quickly recover their net asset values through flexible major asset allocation, dynamic style rotation, and selection of high-quality underlying funds, demonstrating stronger resistance to volatility.

Taking the Sharpe Ratio and Calmar Ratio as classic risk-return indicators, Guotai Minze (FOF) Y has achieved ratios of 2.57 and 3.53 respectively since its strategy transformation, significantly outperforming peer averages. Through superior risk control, it provides investors with a smoother and more comfortable holding experience.

Second, mature and stable investment strategies withstand cyclical tests. While chasing short-term hotspots and focusing on single sectors may yield temporary gains, such performance often proves unsustainable when market conditions change. The steady rise and continuous new highs of FOF net asset values rely on mature, stable, and replicable professional investment research systems with clear frameworks.

The Guotai multi-asset allocation team has long specialized in major asset research, with all team members utilizing quantitative approaches covering five underlying assets: equities, fixed income, commodities, international markets, and derivatives. Building on solid research foundations, the team has established an integrated standardized operational process encompassing macro analysis, asset pricing, style rotation, and risk control constraints. Their investment logic remains consistent over time, not easily swayed by short-term market trends.

In practical investment operations, the team avoids over-reliance on single assets, dynamically optimizing equity-bond allocations based on macro liquidity, economic cycles, valuation levels, and policy directions. Simultaneously, they carefully select high-quality underlying funds across various styles and sectors, flexibly adjusting portfolio structures to effectively disperse concentration risks.

Furthermore, leveraging Guotai Fund's comprehensive investment research platform, various research divisions collaborate, complement each other's strengths, and work in coordination, providing solid research support for implementing multi-asset strategies. This combination of top-down strategic stability, comprehensive asset research capabilities, and platform synergy forms the foundation for the product's long-term stable operation, supporting continuous net asset value growth.

Third, strong long-term operational capability helps navigate volatile markets. Ultimately, robust risk control capabilities and mature investment research systems translate into operational strength better suited for fluctuating markets.

Through sophisticated major asset allocation and refined portfolio management, Guotai Minze FOF has successfully weathered multiple market adjustments. The fund's latest net asset value high demonstrates its multi-asset allocation capability through practical performance.

Since the strategy transformation in May 2025, Guotai Minze (FOF) A-share returns for the most recent six months, one year, since transformation, and since inception have been 8.45%, 12.72%, 18.60%, and 18.92% respectively, significantly outperforming the benchmark across all periods and achieving stable excess returns.

This performance highlights the core value of multi-asset FOFs – their returns don't depend solely on bull markets. Instead, they better utilize the cushioning effect of diversified allocation during volatile or weak markets. Rather than relying on market conditions, these funds employ refined, professional portfolio management to uncover multi-asset return opportunities while controlling risks, achieving long-term stable growth.

According to the latest disclosed fund quarterly report, Guotai Minze FOF's portfolio construction demonstrates scientific rigor: comprehensive coverage of diverse asset classes including bonds, equities, gold, and currency, forming an offensive-defensive asset matrix. The fund also appropriately incorporates quantitative strategies and index-enhanced products, further diversifying portfolio strategy dimensions and effectively dispersing concentration risks from single sectors or styles. This approach strengthens the portfolio's volatility resistance while enhancing return flexibility, achieving balance between stability and growth.

Recently, Guotai Fund's multi-asset allocation team launched another new product – Guotai Enjoy Allocation Six-Month Holding FOF (Class A: 026338, Class C: 026339). Managed by proposed fund manager Xu Hao, who also manages Guotai Minze FOF, this product shares the same mature multi-asset allocation investment research system.

Fund manager Xu Hao has extensive experience in the investment field, long focusing on instrument products, financial derivatives, major asset allocation, absolute return strategies, and FOF investments. With management experience across QDII, ETF, and FOF products, his investment style emphasizes stability and prudence. He excels at establishing strict risk control as the foundation, scientifically optimizing portfolio return structures through multi-asset combinations and complementary strategies to create products with controllable volatility and sustainable returns.

Regarding product positioning, Guotai Enjoy FOF focuses on stability with multi-asset enhancement as its core orientation. Through cross-category differentiated allocation, it achieves effective dispersion and complementarity among various assets, further smoothing portfolio volatility and enhancing long-term allocation resilience.

Specifically, the fund's future investment strategy primarily includes: 1) Fixed income allocation: Approximately 70% core allocation, mainly in stable instruments like government bonds, aiming to smooth portfolio volatility and enhance return flexibility through bond optimization and dynamic duration adjustments. 2) Equity allocation: Approximately 30% core allocation, maximum 40%, covering diverse categories including A-shares, international markets, and gold, with proportions dynamically adjusted based on market conditions and models, utilizing low correlation among major assets for risk hedging.

In product operation philosophy, Xu Hao maintains a balanced allocation approach: on one hand, implementing comprehensive allocation across equities, bonds, gold, and international assets to disperse systematic risks through major asset diversification; on the other hand, avoiding ineffective diversification by focusing on quantitative funds for A-share equity allocation with broad-based positioning and rotation, concentrating on gold in commodities, emphasizing core U.S. stocks for international assets, and prioritizing high-security instruments like government bonds for fixed income. This balance between dispersion and focus aims to achieve stable portfolio growth.

Currently available for subscription, Guotai Enjoy FOF (Class A: 026338, Class C: 026339) demonstrates promising future performance potential, building on consistent allocation concepts and operational logic supported by proven track records of predecessor products.