Chinese GF International

GF Fund Asset Allocation Team: Based on value, excellent at allocation

Date: 2021-04-13 Source: GF Fund

  It is understood that the FOF investment process of the GF Fund’s asset allocation team is divided into four steps: strategic allocation, tactical allocation, fund selection, rebalancing and risk control. Under the premise of determining the proportion of allocation among asset classes, according to changes in the market environment in different periods, we should adjust the proportionamong various asset classes by timing and category allocation, thus optimizingboth investment returns and risks.

  The new fund that Lu Jingchang is about to manage is GF Core Selection FOF. The core concept of the fund is value investment, and strive for long-term stable returns. The product will select high-quality funds through a combination of quantitative and qualitative researches, and carry out structural configuration through tactical strategies such as the dynamic allocation of asset classes, investment styles and industries. The fund announcement shows that the proportion of GF Core Selection FOF investing in stock and hybrid funds accounts for 50%-85% of the fund's assets.Investment in funds of the GF Fund accounts for more than 60% of the proportion.

  For Lu Jingchang, who has 10 years of practical experience of investing in FOF, asset allocation must be combined with the customer's risk appetite. He believes that the core of allocation is to allow customers to obtain reasonable and ideal returns on the path of wealth growth, and at the same time, through asset allocation, to smooth out market fluctuations as much as possible. Therefore, at the top-level configuration level, he will pay special attention to portfolio risks, focus on retracement management, and make the net worth curve as smooth as possible.

  Lu Jingchangalso believes that for a long time, it has been difficult for the fund investors to make money because they can’t hold it, and one objective reason why they can’t hold it is that the investment products fluctuate too much and the retracement is too large. Compound interest is a multiplier effect. If a product rises by 100%, as long as it falls by 50%, the return will return to zero. Based on the idea, he hopes to build a more stable product under his management, so that investors can hold it after buying it and the returns can truly become the investor's own income.