The FOF fund issuance market has experienced exceptional activity this year, with not only a significant surge in fundraising amounts compared to the same period last year but also multiple products selling out within a single day. "3 billion+" mini-hit products have emerged frequently, leading to an increase of 651 billion yuan in scale in less than a quarter. The industry's total assets have also achieved leapfrog growth, successfully surpassing the 3 trillion yuan milestone from 1 trillion yuan in just over a year.
According to Wind market data, as of March 20, calculated based on fund establishment dates, 44 new FOF products have been launched in the market this year, with total fundraising reaching 651.25 billion yuan, a 3.7-fold increase compared to the same period last year. The average fundraising size has substantially risen from 884 million yuan to 1.48 billion yuan.
Why has the FOF market suddenly become highly sought after? In fact, for a long period prior, influenced by factors such as a weaker equity market and underperformance of some products, the FOF market faced a contraction dilemma, with the industry's scale at the end of 2024 being only 1.3315 trillion yuan. A turnaround occurred last year. As the equity market recovered, the concept of multi-asset allocation gained popularity in a low-interest-rate environment, and distribution channels intensified their efforts, public offering FOFs entered a new phase of expansion.
The revitalized FOFs have also completed upgrades and iterations in product content. Evolving from initially focusing primarily on selecting top-tier domestic stock funds and bond funds, FOFs are increasingly incorporating diverse investment tools such as gold, commodities, and overseas equities. They are gradually transforming from "fund selection tools" into "one-stop asset allocation solutions." Unlike index products, which often require investors to judge the investment value and timing of specific sectors themselves, FOF holders only need to choose a product that matches their risk preference, leaving the timing, asset selection, and sector choices to the product manager. This makes them suitable for long-term, hassle-free allocation.
According to market institution estimates, over 50 trillion yuan in medium-to-long-term household time deposits will mature collectively by 2026. FOF products align with households' configuration needs for "seeking progress while maintaining stability" and are expected to become an important tool for absorbing this migrating capital.
ChinaAMC's "Multi-Asset All-Round Platform" Provides the Foundation for Quality FOFs The inherent concepts of "multi-asset" and "one-stop configuration" in FOF products highly align with China Asset Management Co., Ltd.'s long-term commitment to building a "Multi-Asset All-Round Platform." ChinaAMC identified the positioning of a "Multi-Asset All-Round Platform" early on as its core competitiveness in the era of major asset management. It integrates this platform and asset allocation philosophy throughout the company's entire business chain to provide investors with explainable, predictable, and replicable investment returns.
Specifically for FOFs, ChinaAMC recognized early that the core of FOFs is not "picking good funds" but "executing good allocation." Based on local market characteristics, ChinaAMC has developed a "multi-asset, multi-strategy, all-weather" asset allocation methodology. The core principle is to go beyond simple stocks and bonds, aiming to significantly reduce drawdowns and achieve a higher risk-return ratio for the portfolio by increasing the number of low-correlation assets.
As the industry enters a phase of accelerated development, it provides an opportunity for ChinaAMC's years of preparation to leap forward. By the end of 2025, ChinaAMC ranked among the top ten public offering FOF managers in the market with an AUM of 12.358 billion yuan. Its comprehensive and well-developed strategy layout is a microcosm of the industry's shift towards "refined and deep cultivation."
It is reported that ChinaAMC will launch the China Jucheng Preferred Three-Month Holding Mixed FOF on April 1. This R3/medium-risk product precisely matches conservative investors with lower risk preferences. It uses lower-risk bond assets as the base position and flexibly invests 5-30% in equity assets. The strategy combines strategic and tactical asset allocation, striving to deliver long-term, steady investment returns for investors. When the fund manager perceives a lack of opportunities in the equity market, the equity allocation can be reduced to 5% to control risk. When bullish on the market, allocations can be moderately increased to fully capture return potential.
Notably, the China Jucheng Preferred FOF sets a minimum holding period of three months. In volatile markets, this helps reduce disruptions to the fund's assets caused by short-term irrational subscriptions and redemptions, aiming to enhance investment returns through stable holding of investment targets. Interested investors can purchase the fund through channels such as Bank of China or ChinaAMC Wealth.
Risk Disclosure: 1. This fund is a mixed fund of funds. Its long-term average risk and expected return are lower than stock funds but higher than money market funds, classified as medium risk. 2. When constructing the FOF portfolio, the fund manager relies significantly on the historical performance of underlying funds, which may not indicate future performance. 3. The minimum holding period for fund shares is three months. Shareholders cannot redeem shares before this period. 4. The fund may invest in Hong Kong Connect stocks, bearing associated risks. 5. The fund may or may not invest in Hong Kong stocks based on strategy or market conditions. 6. Investors should read the fund's legal documents, understand its risk-return profile, assess their own risk tolerance, and make informed investment decisions. 7. The fund manager does not guarantee profits or minimum returns. Past performance does not predict future results. 8. Investors are responsible for investment risks following their decisions. 9. CSRC registration does not guarantee the fund's value or returns. 10. The fund is issued and managed by ChinaAMC; Bank of China, as a distributor, does not bear investment or repayment liability. 11. This information is for reference only and does not constitute advice or a guarantee. Invest carefully.
For inquiries or complaints, contact: Bank of China Service Hotline or its branches.
Subscription/Application Amount / Subscription/Application Fee / Holding Period / Class A Redemption Fee / Class C Redemption Fee M < 1 million / 0.50% / Y < 180 days / 0.50% / 0.50% 1 million ≤ M < 5 million / 0.40% / Y ≥ 180 days / 0% / 0% M ≥ 5 million / Flat rate: 1,000 RMB per transaction
Management Fee: 0.60% per annum Custodian Fee: 0.15% per annum Service Fee: 0.40% per annum