Following a period of market volatility in the second half of the year, Fund of Funds (FOF) products are seeing a surge in popularity. Data indicates that new FOF issuance since August has reached 52.5 billion yuan, a year-on-year increase of 159%, with total initial fundraising for the year surpassing 120 billion yuan, up over 100% from a year earlier. This trend may reflect a shift in investor risk preference following a significant market correction. In this environment, Yinhua Fund is adding to its FOF lineup with the launch of the Yinhua Juyuan Duoyuan Wenjian Six-Month Holding Period Mixed (FOF) (Class A: 027668, Class C: 027669) starting today. For investors with a suitable risk tolerance, this product aims to provide a one-stop asset allocation tool for navigating a fluctuating market.

The robust expansion of FOFs signifies a change in investor needs. In a low-interest-rate environment, the yields from traditional stable products like deposits and wealth management products have been declining, putting pressure on investors to reallocate their capital. FOFs, with their "one-stop asset allocation" positioning, have become a key choice for investors who meet the risk tolerance requirements. Historical data shows that the Wind Balanced Mixed FOF Index has accumulated a return of 33.82% since its base date (October 25, 2017), more than double the 16.00% return of the CSI 300 Index over the same period. Its annualized volatility was only 4.28%, significantly lower than the CSI 300's 18.40%, demonstrating an ability to balance return potential with volatility smoothing.

Take the newly launched Yinhua Juyuan Duoyuan Wenjian Six-Month Holding Period Mixed (FOF) as an example. A key feature of the fund is its focus on multiple asset classes while pursuing medium-to-low volatility. According to its prospectus, the fund will look at investment opportunities across Chinese bonds, A-shares, Hong Kong stocks, US stocks, and gold, aiming to balance risk and return within the portfolio. For the bond portion, the strategy emphasizes pure bond funds, with a focus on adjusting short and long duration to secure a relatively stable base return. Additionally, between 5% and 30% of fund assets will be invested in equities, equity funds, and hybrid funds, seeking to capture excess return potential.

As a multi-asset FOF, the Yinhua Juyuan Duoyuan Wenjian Six-Month Holding Period Mixed (FOF) also places significant importance on investor experience, paying close attention to drawdown control. During the investment process, it aims to diversify risk from the dimensions of multiple assets and strategies, focusing on the stability of returns. The proposed fund manager, Wang Jiapeng, is known for his expertise in macro asset allocation and has established a three-step investment methodology: "Strategic Allocation → Tactical Allocation → Fund Selection." Guided by cyclical thinking, this approach involves dynamic allocation across assets and strategies based on balanced coverage, with an emphasis on using a fund selection model to pursue enhancements in specific strategies, aiming for excess returns relative to the benchmark. His representative product, the Yinhua Huafeng Three-Month Holding Period Mixed (FOF) A, has achieved a cumulative return of 5.68% since its inception, delivering an excess return of 7.17%.

The recent uptick in FOF issuance this year may indicate a shift among investors from chasing a single asset's Beta towards seeking Alpha through diversified allocation. For those who meet the relevant risk tolerance criteria, it may be worthwhile to consider the Yinhua Juyuan Duoyuan Wenjian Six-Month Holding Period Mixed (FOF) (Class A: 027668, Class C: 027669) as a tool to achieve multi-asset exposure in one step, aiming to capture opportunities across equities, bonds, commodities, and other markets.

Risk Disclosure: The fee structure for the Yinhua Juyuan Duoyuan Wenjian Six-Month Holding Period Mixed (FOF) is as follows: For Class A, the subscription fee is 0.50% for amounts under 5 million yuan and a fixed 1,000 yuan per transaction for amounts of 5 million yuan or more. The purchase fee follows the same structure. There are no redemption fees for either Class A or C; however, each share has a minimum holding period of six months before it can be redeemed. The management fee is 0.60% per annum, and the custodian fee is 0.15% per annum. The Class C sales service fee is 0.40% per annum. Please refer to the fund's product information summary for details, as this information is current as of August 26, 2026, and may change.

The Wind Balanced Mixed FOF Index's base date is October 25, 2017, with annual returns of 4.60%, -4.92%, -1.65%, 3.82%, and 6.16% for the years 2021 through 2025, respectively. The CSI 300 Index's base date is December 31, 2004, with annual returns of -5.20%, -21.63%, -11.38%, 14.68%, and 17.66% for the same period. Past performance is not indicative of future results.

Fund Manager Wang Jiapeng's background: He holds a master's degree and previously worked at CCB Principal Asset Management before joining Yinhua Fund Management Co., Ltd. in March 2023. He currently serves as a fund manager/assistant in the FOF Investment Management Department. His managed funds include the Yinhua Huali Balanced Optimal Selection One-Year Holding Mixed (FOF) (since 2024.12.16), Yinhua Huafeng Three-Month Holding Period Mixed (FOF) A/C (since 2025.1.22), Yinhua Juxiang Diversified Allocation Three-Month Holding Period Mixed (FOF) A/C (since 2025.11.17), Yinhua Huayuan Diversified Allocation Six-Month Holding Period Mixed (FOF) A/C (since 2026.2.10), and Yinhua Huarui Diversified Allocation Three-Month Holding Mixed (since 2026.6.25).

Performance of funds managed by Wang Jiapeng is as follows: The Yinhua Huali Balanced Optimal Selection One-Year Holding Mixed (FOF), established on August 31, 2022, saw net value growth rates of -7.24%, 1.57%, 6.28%, and 1.82% in 2023, 2024, 2025, and since inception, respectively, compared to benchmark returns of 1.24%, 9.61%, 3.66%, and 17.59% for the same periods. The Yinhua Huafeng Three-Month Holding Period Mixed (FOF) A, established on January 22, 2025, has a net value growth rate of 5.68% since inception, against a benchmark return of -1.49%. The C class of the same fund, also established on January 22, 2025, has a net value growth rate of 5.07% since inception, versus a benchmark of -1.49%. The Yinhua Juxiang Diversified Allocation Three-Month Holding Period Mixed (FOF) A, established on November 15, 2025, has a net value growth rate of 1.89% since inception, compared to a benchmark return of 0.55%. Its C class, established on the same date, has a net value growth rate of 1.64% since inception, against a benchmark return of 0.55%. (Data source: Fund periodic reports, as of 2026.6.30)

Investing involves risk and requires caution. A fund is a long-term investment tool, primarily functioning to diversify investment and reduce the specific risk of holding a single security. Funds are different from financial instruments like bank deposits that provide fixed income expectations. When you purchase fund products, you may share in the investment gains based on your shareholdings, but you may also bear the losses arising from the fund's investments. Before making any investment decision, please carefully read the fund contract, prospectus, and product information summary, along with this risk disclosure statement. Fully understand the fund's risk-return characteristics and product features, consider all risk factors, and assess your own risk tolerance based on your investment objectives, horizon, experience, and financial situation. Make rational and cautious decisions based on an understanding of the product and the suitability advice provided. Yinhua Fund Management Co., Ltd. makes the following risk disclosures: 1. Funds are categorized into different types, such as equity funds, hybrid funds, bond funds, money market funds, and FOFs, each with different expected returns and varying degrees of risk. Generally, higher expected returns come with greater risk. 2. Funds may face various risks during operation, including market risk, management risk, technical risk, and compliance risk. The risk of significant redemption is unique to open-end funds, where you might not be able to redeem all your shares or payment may be delayed if net redemption requests exceed a certain proportion of the fund's total shares on a given day. 3. You should be fully aware of the difference between periodic fixed-amount investment in funds and a regular savings plan. Periodic investment is a simple way to encourage long-term investment and average out costs, but it does not eliminate the inherent risks of fund investing, does not guarantee returns, and is not an equivalent substitute for savings. 4. For this special type of product: (a) The fund contract specifies a minimum holding period since the fund may impose liquidity constraints on redemption or selling during this period. (b) This fund may invest in stocks listed on the Stock Connect, which involves specific risks due to differences in the investment environment, targets, market systems, and trading rules. 5. The fund manager is committed to managing fund assets with integrity and diligence but does not guarantee a profit or a minimum return. Past performance does not indicate future results, and the performance of other funds managed by the same company is not a guarantee for this fund's performance. Yinhua Fund Management Co., Ltd. reminds investors of the "buyer beware" principle, meaning that investment risks arising from fund operations and NAV changes are borne by the investor after the investment decision is made. Fund managers, custodians, distributors, and related parties do not make promises or guarantees regarding investment returns. 6. This fund is established by Yinhua Fund Management Co., Ltd. in accordance with relevant laws and regulations and has been registered with the China Securities Regulatory Commission (CSRC). The fund contract, prospectus, and product information summary are publicly available on the CSRC's fund e-disclosure website and the fund manager's website. Registration with the CSRC does not indicate approval of the fund's investment value, market prospects, or returns, nor does it mean that investing in this fund is risk-free.