In the spring of 2026, global capital markets experienced significant turbulence, with investors grappling for direction. Chinese A-shares and Hong Kong stocks continued their volatile tug-of-war, while the Nasdaq declined nearly 6% year-to-date amid underperformance by major technology companies. Gold weathered substantial fluctuations before stabilizing, and crude oil resembled a disturbed captive animal, wildly fluctuating amid geopolitical tensions.
This multi-asset volatility created widespread unease, driving risk aversion higher. However, within these market undercurrents, certain fund managers skilled in multi-asset allocation have applied cyclical thinking throughout their investment processes and drawdown management strategies, earning dual trust from distribution channels and investors alike. Yinhua Fund's Wang Jiapeng stands among these professionals.
As a fund manager particularly attuned to emerging trends, Wang resists being constrained by conventional wisdom, believing that those willing to explore new territories can carve their own paths through uncertainty. This curiosity about innovation exists in dynamic tension with his deep respect for market cycles. He maintains that all assets move cyclically—trees cannot grow to the sky, and prolonged declines eventually give way to recoveries. Simultaneously, he recognizes fundamental structural shifts occurring worldwide: artificial intelligence is reshaping industrial frameworks, geopolitical developments are altering asset pricing logic, and both gold and U.S. equities operate under new paradigms compared to historical norms. Consequently, asset allocation strategies must adapt accordingly.
Amid current uncertainties, Wang aims to navigate market fluctuations with measured discipline. He seeks to identify the cyclical positioning of various assets, strategies, and funds, then overweight those trading at relatively depressed levels.
Wang's journey from fund selection specialist to allocation expert reflects his commitment to being a clear-eyed minority. With FOFs now exceeding 310 billion yuan in scale after years of development, his quantitative background from Fudan University combined with a master's in finance and quantitative methods from University College London has enabled him to integrate macroeconomic cycles with micro-level data analysis through a "quantitative + active" investment framework.
Since joining Yinhua Fund's FOF investment department in 2023, Wang has refined his methodology into a more mature "cyclical thinking + global multi-asset allocation" system. Currently serving on Yinhua's FOF and investment advisory committees, he manages Yinhua Huafeng with a focus on medium-to-low volatility and long-term steady growth. Fund reports indicate that by end-2025, the fund achieved a 4.06% return since its January 22, 2025 inception, with 4.55% cumulative excess returns.
Another product under his management, Yinhua Huali, targets medium-volatility multi-asset allocation. By end-2025, it recorded a 6.28% annual net asset value growth rate, outperforming its benchmark by 2.62%, delivering strong risk-adjusted returns.
These outcomes stem from Wang's clear-eyed assessment of broader trends. During 2020-2021, when active equity funds dominated, the prevailing FOF strategy focused on "selecting superior funds." While peers chased star managers promising alpha, Wang studied overseas pension fund reports, learning from institutions that survived decades of cycles that fund selection constitutes just one component—not the entirety—of asset allocation.
Realizing that clinging solely to fund selection expertise risked obsolescence, Wang charted an independent path while the industry debated active versus passive strategies and asset allocation versus fund selection priorities. Using cyclical thinking as his compass, he implements a three-step approach: strategic allocation sets direction, tactical adjustments capture opportunities, and fund selection enhances returns. He avoids chasing short-term trends and rejects overreliance on any single tool, employing quantitative models for fund screening while retaining 30% discretion for dynamic adjustments.
Wang acknowledges that quantitative models can score numerous metrics, but certain elements—like a fund manager's investment process—defy pure algorithmic calculation. Scores reflect outcome snapshots, whereas processes reveal comprehensive capability. Strong investment processes don't guarantee success but make favorable outcomes less reliant on luck.
Describing himself as a "cycle theorist unbound by conventional experience," Wang actively experiments with AI tools while recognizing their limitations. He believes technology should liberate human intellect from routine tasks rather than replace judgment in deep investment decisions.
Within wealth management's low-interest-rate environment, Wang's products align with bank distribution channels' discrete subscription patterns, prioritizing long-term success probabilities. This emphasis on investor experience reflects a steadfast commitment: "Controlling drawdowns takes precedence over pursuing returns, prioritizing clients' long-term gains and profitability experience."
Operationally, this philosophy translates into distinct strategic allocations across A-shares, U.S. equities, gold, and bonds based on long-term expectations and executable feasibility. Wang notes that assets like U.S. stocks and gold may see diminished long-term returns. When short-term rallies deviate substantially from long-term averages, caution becomes essential—assuming "this time is different" proves dangerously speculative.
Practical considerations like fund capacity and investability also matter. Since 2024, QDII-ETF premium rates have shown erratic distributions, impairing allocation effectiveness. Significant premiums in overseas-focused funds could amplify FOF drawdown risks.
Tactical allocation consumes most of Wang's daily efforts, centered on cyclical patterns across assets. Early last year, he reduced U.S. equity exposure due to elevated valuations while increasing A-share allocations given attractive valuations. In Yinhua Huali's Q1 2025 report, he emphasized growing domestic growth-style equity assets amid expected economic recovery, trimmed overseas equity exposure, and maintained short-duration bond positions anticipating greater volatility.
The Yinhua multi-asset team—managing diverse products including annuities, FOFs, and "fixed-income+" strategies—provides invaluable perspective for validating cycle assessments. Last September, internal discussions about Hong Kong stocks' attractiveness demonstrated this collaborative validation process, reinforcing Wang's belief that collective wisdom ensures enduring progress.
Regarding current complex markets, Wang adopts a "cautiously optimistic" stance. While A-shares' absolute valuations exceed last year's lows, attractive equity-bond yield spreads under low-rate conditions sustain structural opportunities. He observes that if most active managers struggle to identify compelling stocks, markets may approach bubble territory—a scenario not yet evident. Cyclical sectors, domestic demand chains, and AI-related manufacturing maintain reasonable valuations with stable earnings growth, resembling a rising river where certain areas still offer promising opportunities.
PPI recovery and corporate earnings improvements should bolster markets. Policy measures since 2025 have reduced CSI 300 volatility and improved Sharpe ratios, enhancing market resilience, though this new governance model's value remains underappreciated, suggesting potential valuation expansion.
On bonds, Wang maintains a neutral outlook, with limited downside risks amid low rates and moderate easing but constrained upside potential, making coupon returns more relevant.
For overseas assets, he adopts a "neutral stance, awaiting opportunities" approach. While U.S. equities' long-term competitiveness remains intact, the Nasdaq's 3.22% decline since October 2025 reflects investor desensitization to positive news. Either sideways consolidation or corrections would help digest valuations, but neither justifies significant overweighting currently.
Similarly, gold's long-term thesis holds, but crowded trades warrant caution toward short-term speculation. Since 2008, central banks' shift from net sellers to net buyers has reshaped gold's supply-demand dynamics, yet elevated positioning heightens near-term correction risks. Wang advises waiting for more comfortable entry points or clearer catalysts based on value principles.
Risk management focuses on two areas: overseas liquidity uncertainty as Fed easing cycles mature, requiring caution toward theme-based funds and highly valued assets dependent on abundant liquidity; and geopolitical spillovers that could reshape global economic mechanisms, necessitating balanced allocations beforehand.
Wang coexists with market uncertainties like a vessel avoiding overconcentration in storm-prone waters. He acknowledges that investment directions aren't always clear—much time involves ambiguity without obvious cues. During such periods, balanced positioning and patience become optimal strategies. He awaits market signals, whether from assets falling to attractive levels or shifting investment logics, before adjusting allocations.
This represents the other dimension of his investment philosophy: trusting common sense, aligning with cycles, and patiently awaiting opportunities—perhaps the most rational choice ordinary investors can make in an anxious era.