Many individuals are currently facing the challenge of maturing 1-2 year fixed deposits that previously yielded over 2%. Upon reviewing similar duration products across various platforms, finding options offering even 1.5% has become difficult.
2026 marks a significant year for the maturity of substantial high-interest fixed deposits in the banking system. While estimates vary among market institutions, consensus indicates at least 50 trillion yuan in fixed deposits will mature this year. Although most funds are expected to be reinvested, even if approximately 10% seek better-yielding alternatives, the scale of capital migration remains considerable.
In the current low-interest environment, traditional wealth management returns have declined, making FOF products—particularly bond-oriented and "fixed-income plus" strategies—more attractive due to their favorable risk-return profiles. These products are emerging as potential destinations for migrating deposits. Additionally, accelerated sector rotation in the A-share market since the beginning of the year has increased the difficulty for individual investors in fund selection and timing, a challenge that FOFs can effectively address.
A quieter transformation is occurring within FOF products themselves. Early mainstream products primarily focused on selecting domestic equity and bond funds, with some prioritizing short-term rankings by concentrating heavily in specific sectors, leading to poor performance during market downturns. Newly issued products this year emphasize dynamic fund screening, broad asset allocation, and portfolio management, enhancing diversification across markets and asset classes. Increasingly, they incorporate diverse instruments such as gold, commodities, and international equities.
In essence, FOFs are evolving from "fund selection tools" into "comprehensive asset allocation solutions." Unlike index products that require investors to assess sector value and timing independently, FOF investors simply choose products matching their risk preferences, delegating timing, asset, and sector decisions to professional managers—ideal for long-term, hands-off allocation. Wind data shows 53 new FOFs established by March 27 this year, with total issuance reaching 69.049 billion yuan, a 388% year-on-year increase, already reaching 82% of the full-year 2025 issuance volume.
The "multi-asset, one-stop allocation" philosophy of FOF products aligns with China Asset Management's long-term vision of building a "multi-asset全能platform." The firm has positioned this platform as a core competitive advantage in the asset management era, integrating business chains through multi-asset capabilities to deliver explainable, predictable, and replicable investment returns.
Specifically for FOFs, China Asset Management recognized early that the core of FOFs lies not in "selecting good funds" but in "effective allocation." Based on local market characteristics, the company developed a "multi-asset, multi-strategy, all-weather" asset allocation methodology. This approach moves beyond simple equity/bond allocation by incorporating low-correlation assets to significantly reduce drawdowns and improve risk-adjusted returns. The strategy embraces global markets and diversifies across equities, bonds, commodities, and other low-correlation assets to mitigate risk and expand return sources.
Industry acceleration provides an opportunity for China Asset Management's accumulated expertise. By the end of 2025, the company ranked among the top ten public FOF managers with 12.358 billion yuan in assets under management. Its comprehensive strategy layout exemplifies the industry's shift toward "refined operations."
On April 1, China Asset Management launched China Jucheng Preferred Three-Month Holding Mixed FOF (Class A: 026894, Class C: 026895). This R3/medium-risk product suits conservative investors with lower risk tolerance, using lower-risk bond assets as the foundation while flexibly allocating 5%-30% to equity assets (including equity funds, hybrid funds, and stocks). Its benchmark combines returns from pure bond funds (80%), China A-Share 500 Index (6%), MSCI All Country World Index (6%), gold spot contracts (3%), and demand deposit rates (5%).
The fund maintains a neutral-to-cautious equity allocation range of 5%-30%. Managers may reduce equity exposure to 5% when market opportunities are scarce or increase it appropriately during optimistic outlooks to capture returns.
Notably, the three-month minimum holding period helps reduce short-term irrational trading impact during volatile markets, aiming to enhance returns through stable holdings. Investors seeking family asset optimization, stable returns, medium-to-long-term planning, or simplified fund selection can purchase through Bank of China or ChinaAMC Wealth (Class A only).
Risk Disclosure: Investments carry risks different from bank deposits. This hybrid FOF presents medium risk (R3) with returns generally lower than equity funds but higher than money market funds. Performance relies partially on historical fund data, which may not indicate future results. Redemptions are restricted during the three-month holding period. Hong Kong stock connectivity investments carry unique risks. The fund may or may not invest in Hong Kong stocks based on strategy. Investors should review prospectus documents and assess risk tolerance carefully. Returns are not guaranteed, and past performance doesn't indicate future results. ChinaAMC manages the product, with Bank of China acting as distribution agent without investment liability.
Fee Structure: - Subscription fee (Class A): 0.50% (<1M yuan), 0.40% (1-5M yuan), 1,000 yuan flat (≥5M yuan) - Redemption fee: 0.50% (<180 days), 0% (≥180 days) for both classes - Management fee: 0.60% annually - Custody fee: 0.15% annually - Service fee (Class C only): 0.40% annually
Contact: Bank of China hotline (95566) or branches for inquiries.
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