Enriching underlying investment tools, public fund allocation is poised for growth.

Recently, the CSRC solicited public opinions on the Measures for the Operation and Management of Publicly Offered Securities Investment Funds and supporting rules. Among them, several relaxation clauses concerning the investment scope of funds have drawn industry attention, such as the proposed increase in the upper limit for the proportion of non-FOF products investing in other funds from 10% to 30%, and allowing FOFs to invest in ETF feeder funds. In addition, the establishment threshold for FOFs is proposed to be lowered to 50 million yuan. Industry insiders believe that this is a set of relaxation clauses "tailor-made" for asset allocation products, which will further broaden the strategy space of related products and improve the allocation efficiency of fund portfolios. In the future, public funds will place greater emphasis on multi-asset portfolio management capabilities, and FOFs and "fixed income plus" products, which inherently possess asset allocation attributes, will be important directions for competition among public fund institutions.