Recently, the Securities Regulatory Commission sought public comments on the “Administrative Measures on the Operation of Publicly Raised Securities Investment Funds” and supporting rules. Among them, a number of loosening provisions surrounding the scope of fund investment have attracted industry attention. For example, the upper limit of non-FOF products investing in other funds is proposed to be raised from 10% to 30%, and FOF is allowed to invest in ETF-linked funds. Furthermore, the FOF establishment threshold is to be lowered to 50 million yuan. According to industry insiders, this is a set of “tailor-made” loosening clauses for asset allocation products, which will further broaden the strategic space for related products and improve the allocation efficiency of fund portfolios. In the future, public funds will place more emphasis on multi-asset portfolio management capabilities, and FOF and “fixed income +” products, which naturally have asset allocation attributes, will be an important direction for competition among public funding institutions.

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