Following the Spring Festival holiday, multiple hybrid bond-focused Fund of Funds (FOFs) have launched new offerings. These hybrid bond-focused FOFs have developed rapidly in recent years, with fundraising activity heating up as they fully leverage their advantages in multi-asset allocation. Currently, the total scale of hybrid bond-focused FOF products is nearing 200 billion yuan, establishing them as a core driver of growth for FOF products in 2025. Industry insiders believe that these hybrid bond FOFs, which offer a superior risk-return profile, are currently receiving more favor from conservative investors.

The hybrid bond-focused FOF sector is booming, with its scale more than tripling over the past year. Recently, products such as China Merchants Zhiying Youxuan 6-Month Holding A and Xingquan Anyang Wenjian Yanglao One-Year Holding began their issuance. On February 24th, three more products commenced fundraising: MinSheng Jinyin Duoyuan Wenyu Allocation 3-Month Holding A, Fullgoal Zhi'an Wenjian 90-Day Holding A, and GF Wental Duoyuan Jiyu Three-Month Holding A. Since the start of the year, the issuance of hybrid bond-focused FOF products has been exceptionally active. On January 19th alone, over ten such FOFs began fundraising, with products like Southern Wenjia Duoyuan Allocation 3-Month Holding concluding their fundraising periods ahead of schedule. Bosera Yingtai Zhenxuan 6-Month Holding raised the largest amount, securing approximately 5.844 billion yuan.

Data from Wind shows that the latest scale of hybrid bond-focused FOF products stands at 195.476 billion yuan, accounting for over 67% of the total scale of publicly offered FOFs. The scale of this category was only 55 billion yuan at the end of 2024 but reached 149.1 billion yuan by the end of 2025, representing a growth of over 94 billion yuan in a single year. Publicly offered FOFs experienced a recovery in 2025 after three years of downturn, with total scale increasing by over 110 billion yuan for the year, with hybrid bond-focused FOFs contributing the majority of this growth.

Hybrid bond-focused FOFs excel by leveraging multi-asset allocation advantages, resulting in an excellent risk-return profile. Bond FOFs primarily invest in bond funds (including pure bond funds and hybrid bond funds), with their allocation to equity assets (including stock funds and the equity portions of hybrid funds) typically kept below 20%, focusing mainly on stable returns. In contrast, hybrid bond-focused FOFs build on a foundation of bond funds and appropriately allocate to diverse assets like equities, usually keeping the allocation to equities and similar assets below 40%. They are typical representatives of the "fixed-income plus" strategy, aiming to achieve enhanced returns by participating moderately in diverse markets.

According to the prospectuses of some of the aforementioned products, for the "enhancement" portion, the funds may maintain an equity asset allocation exposure of 5% to 30% and can also invest in diverse assets such as commodity funds, QDIIs, and public REITs to capture structural opportunities in different markets and improve the portfolio's return potential. While traditional FOFs often emphasize selecting excellent funds within one or several asset classes, hybrid bond-focused FOF products frequently implement a major asset class strategic allocation strategy, diversifying portfolio risk through multi-asset allocation. For example, the MinSheng Jinyin Duoyuan Wenyu Allocation 3-Month Holding FOF describes its approach as holistically assessing the risk exposure of various asset classes, striving to achieve effective hedging of multi-asset risks and enhancing the portfolio's adaptability across different macroeconomic environments. The Fullgoal Zhi'an Wenjian FOF dynamically adjusts the allocation proportion and direction of the enhancement portion based on the macroeconomic cycle and market conditions. The strategy of the Southern Wenyuan Youxuan 3-Month Holding Hybrid further points out that the core idea is not simply to "buy more assets" but to place greater emphasis on diversifying the sources of risk. During portfolio construction, it focuses not only on asset classes but also on the contribution of various assets to portfolio volatility. The goal is not to chase short-term high returns but to strive for smoother, more sustainable performance across different economic environments.

Fund industry insiders note that driven by both the low-interest-rate environment and increased market volatility, single-asset strategies are increasingly struggling to meet investors' core demands for wealth preservation and appreciation. As "professional buyers" in asset allocation, FOF funds are favored by institutions due to their advantages in diversified investment and volatility smoothing. The sharp increase in the scale of hybrid bond-focused FOFs clearly reflects the more urgent demand for稳健配置工具 (steady allocation tools) with a superior risk-return profile under current market conditions.

Data shows that over the past year, the Wind Hybrid Bond-Focused FOF Index has gained 7.27%, significantly outperforming the Pure Bond Fund Index's gain of 1.14%. Meanwhile, the annualized volatility of the Hybrid Bond-Focused FOF Index over the past year was 3.47%, with a maximum drawdown of -2.13%, both substantially lower than the CSI 300 Index's 14.86% volatility and -10.49% drawdown. Furthermore, the risk-return ratio of hybrid bond-focused FOFs is very favorable. Measured by the Sharpe Ratio, the central tendency for these FOFs over the past year exceeds 1.7 (while stock funds are generally below 1), with top performers even exceeding 3. While controlling risk, some products have also managed to deliver high returns, with gains exceeding 20% over the past year.

In the list above, two products from Qianhai开源 achieved outstanding returns. Checking their Q4 2025 reports reveals that both products primarily generated gains from the metals and technology sectors. In 2025, disruptions from tariff disputes, coupled with intensified global geopolitical conflicts, boosted safe-haven attributes. Additionally, the Fed re-entered an interest rate cutting cycle, implementing three cuts throughout the year, which brought significant returns to the gold sector. The technology sector performed well due to stronger-than-expected AI investment and strong policy support, benefiting areas like communications and semiconductors.

Fund industry insiders further point out that in a bond market environment where coupon returns are continuously weakening, hybrid bond-focused FOFs can utilize their advantage of having a broad investment scope. Compared to high-volatility FOFs, low-volatility FOF products can play a better role in product supply regarding long-term drawdown volatility and market demand. Products like hybrid bond-focused FOFs, which offer high risk-return value, are a key focus for the future of publicly offered FOFs.