As the annual reports of public funds have been fully disclosed, the products have undergone a collective review after experiencing a volatile and divergent market environment over the past year. Against a backdrop of accelerating rotation among various assets such as equities, bonds, and commodities, where single strategies struggle to maintain consistent outperformance, a group of products emphasizing drawdown control and diversified allocation have stood out, becoming the focus of investor attention. Among them, two low-volatility FOFs under ZhongOu Fund—ZhongOu Yingxuan Wenjian and ZhongOu Yujian Wenrui—have provided ordinary investors with a smoother holding experience by steadily navigating complex markets through their forward-looking multi-asset allocation 2.0 strategy, which synergizes assets including stocks, bonds, gold, QDIIs, and commodity funds.

Steady Returns and Excellent Drawdown Control According to the 2025 annual report, the two products have gained the trust of nearly 360,000 holders, over 94% of whom are individual investors, indicating that ordinary investors have voted with their real money. The products have lived up to expectations, generating a combined profit of over 300 million yuan for the year.

Over a longer period, the robust performance of the two products is evident. As of March 31, 2026, ZhongOu Yujian Wenrui A has achieved a cumulative return of 20.65% since its inception on April 15, 2020, with a one-year return of 4.50% and a maximum drawdown of -1.82% over the past year. ZhongOu Yujian Wenrui Y has delivered a cumulative return of 14.71% since its share class was established on November 16, 2022, with a one-year return of 4.77%. ZhongOu Yingxuan Wenjian 6-Month Holding A recorded a one-year return of 3.23%, with a maximum drawdown of only -0.97%. ZhongOu Yingxuan Wenjian 6-Month Holding D has achieved a cumulative return of 6.72% since its inception on March 28, 2024, with a maximum drawdown of only -0.97% since establishment. Both products have historically demonstrated a favorable risk-return profile and stable drawdown control.

It is understood that both ZhongOu Yingxuan Wenjian and ZhongOu Yujian Wenrui are positioned as lower-risk, bond-biased hybrid FOFs. However, they go beyond traditional bond-biased hybrid product allocations by employing a multi-asset allocation framework at the underlying level. Their investment scope covers diverse types such as active equity funds, bond funds, commodity funds, REITs, and QDIIs, extending the allocation dimension from the traditional stock-bond dichotomy to a more diversified portfolio including A-shares, bonds, gold, commodities, and overseas markets. At the FOF level, risk is further diversified by selecting a basket of sub-funds with different styles, achieving a higher level of risk dispersion on top of the underlying funds’ diversification—this not only mitigates risks associated with individual sub-funds but also further disperses risks at the underlying asset level, creating a "squared" risk dispersion effect that helps smooth portfolio volatility and enhance investment stability. On this basis, the two products aim to pursue long-term compound returns while keeping risks under control.

Timely Adjustments and Diversified Upgrades In the first half of 2025, against the backdrop of fluctuating macroeconomic expectations and sustained pro-growth policies, sector performances were relatively balanced, with value and growth styles alternating. However, in the second half, driven by the global AI industry chain boom, accelerated domestic semiconductor localization, and rising commodity prices, AI, semiconductors, and non-ferrous metals became the main market drivers. Meanwhile, low-valuation blue chips and consumer sectors underperformed due to sluggish domestic demand recovery, and the Hang Seng Tech Index weakened after October due to tightening overseas liquidity and disruptions in some leading companies’ earnings. Overall, the market exhibited "highly concentrated structures and significantly accelerated rotations," making it difficult for any single asset style to maintain sustained outperformance.

Fund periodic reports indicate that in this complex environment, the two products prudently managed their portfolios based on macro, micro, and policy cues, flexibly adjusting allocations to equities, bonds, commodities, and overseas assets. In terms of timing, the products steadily accumulated excess returns from equities in the first half, experienced some decline in excess returns during the strong market rally in Q3, and sought to recover in Q4. In pure bonds, cautious allocations were maintained at the beginning and middle of the year, with an emphasis on stability in品种 and duration. For commodities, gold allocations were generally below the benchmark, with plans to optimize based on further research. By year-end, energy and agricultural commodities were gradually increased, completing the basic allocation. For overseas equities, allocations were gradually increased starting in Q2, with significant additions to overseas tech in August, largely achieving the intended allocation for the year.

Over the past year, both products have delivered returns exceeding 3.2%, with drawdowns kept to a minimum, demonstrating resilience amid market structural divergence and rapid style rotations. It is evident that in a market environment where uncertainties around single assets have increased, ZhongOu’s low-volatility FOFs have evolved from traditional stock-bond allocations to a more diverse "multi-asset allocation 2.0" phase. This evolution returns to the essence of FOFs—achieving secondary risk dispersion and capturing multi-dimensional returns by allocating to a basket of sub-funds across different asset classes, styles, and managers, building on the underlying funds’ diversification of individual stock risks. Now, with broader investment coverage and more diverse targets, FOFs are striving to create "all-weather portfolios" that can navigate uncertainties, leading the market to赋予 these products a new expectation—"Fund of the Future."

Team Expertise and Systematic Support ZhongOu Fund has long placed great emphasis on the development of its multi-asset FOF team, with an early start in product布局, long-term cultivation, and a comprehensive product line. As of December 31, 2025, ZhongOu Fund had launched 17 FOF products, covering a wide range of strategies such as multi-asset allocation, active fund selection, and active+ETF strategies, catering to the investment needs of clients with different risk preferences. As one of the industry’s first pension FOF managers, ZhongOu Fund has been深耕 the FOF business for over seven years since launching its first pension FOF in 2018. Additionally, as early as 2021, ZhongOu introduced ZhongOu Huixuan FOF-LOF, a FOF-LOF product tradable on the exchange, and also launched the industry’s first ETF-FOF—ZhongOu Jiji Duoyuan Peizhi 3-Month Holding ETF-FOF. The ZhongOu FOF team is not limited to a single category but continues to expand in the directions of multi-asset, multi-form, and multi-risk levels, leading the industry in product innovation.

Building on this foundation, ZhongOu’s low-volatility FOF products use bond assets as the base, complemented by high-quality equity assets and convertible bonds, and incorporate diverse underlying types such as gold, U.S. stocks, and U.S. bonds through tools like commodity funds, REITs, and QDIIs. Adhering to principles of low correlation, regional dispersion, and asset diversification, they seek to balance risks, reduce volatility, and achieve long-term steady appreciation through multi-asset synergy. The allocation structure is dynamically adjusted and flexibly optimized in response to market changes.

Currently, the objectives of ZhongOu’s low-volatility FOF products can be summarized into four "strives": striving for better long-term compound returns under moderately controllable risks; striving to provide clients with a smoother holding experience; striving to introduce more asset categories to improve product characteristics based on thorough research; and striving to maintain portfolio liquidity.

With clear goals, strategies, patience, and professionalism, ZhongOu Fund’s FOFs have demonstrated a viable path for ordinary investors to navigate market cycles through solid performance.