Recently, the Shanghai Securities Fund Evaluation released the 2024 annual report for public offering FOF funds. The report states that overall, the current public offering FOF market faces significant challenges. Although the equity market has seen some recovery in 2024, market confidence has not fully returned, and some FOF products still face issues with shrinking scale. The recovery of the equity market in 2024 has improved the overall performance of FOF funds, with all types of FOF funds performing well and having positive returns. Specifically, bond-oriented FOF and equity-oriented FOF funds have performed notably well, with average returns of 6.3% and 4.4% respectively, while flexible allocation FOF products have slightly lower performance, with an average yield of 3.4%. The number of FOF products remains stable, but the scale continues to decline. In 2024, compared to the end of 2023, the number of FOF products increased by 2.67%, while the scale shrank by 14.36%. The year-on-year growth rate of FOF scale in 2024 was still lower than the year-on-year growth rate of non-monetary funds in the overall market. The fundraising for public offering FOF funds was not ideal, but the average issuance size saw a slight increase from before. In 2024, a total of 38 FOF funds were established, raising a total of 11.598 billion yuan. The number of new funds and the amount raised decreased by 68% and 51% respectively compared to 2023, but the average amount raised reached 305 million yuan, a slight increase from the previous year. In 2024, a total of 25 FOF funds were liquidated, a significant increase compared to 2023. The head effect is still evident in the surviving market, but there has been a significant decline in management scale. The top 10 fund companies by management scale accounted for a cumulative share of 63.38%, a decrease of 1.73% compared to 2023. Since the establishment of pension FOF fund Y shares at the end of 2022, both the number and management scale have steadily increased. Performance of FOF funds The recovery of the equity market in 2024 has improved the overall performance of FOF funds, with all types of FOF funds having positive returns. However, with the equity market experiencing significant declines for two consecutive years prior, the smaller the risk exposure of FOF funds over the past three years, the higher the average return. This phenomenon is particularly evident in pension target-risk FOFs. Due to its lower risk exposure, steady pension target-risk FOFs have performed better than other two types of pension target-risk FOFs. Asset allocation of FOF FOFs prefer to hold funds with relatively large sizes. The median size of bond funds and stock funds held by FOFs exceeds 4 billion yuan and 2 billion yuan respectively, significantly higher than the median size of bond funds and stock funds in the overall market. In 2024, there was a trend of public offering FOFs increasing the allocation proportion of stock and QDII funds. Bond funds have always been the highest proportion of funds held by public offering FOFs, and this proportion has remained relatively stable at around 55%. In 2024, the proportion of stock and QDII funds has shown a continuous upward trend, with proportions of 14.9% and 6.1% respectively, representing increases of 1.8% and 3% from the previous year.