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21st Century Business Herald Zhang Xin reports from Shanghai

On August 17, the "2024 Asset Management Annual Conference" hosted by "21st Century Business Herald" and co-organized by Shanghai Pudong Development Bank was grandly held in Shanghai.

At the roundtable discussion "Asset Allocation Methodology under Low Interest Rate Trend" of the "Major Asset Allocation and Wealth Management Theme Forum" held that afternoon, Wang Delun, Assistant to the President, Chief Economist and Director of Asset Allocation of Industrial Securities Asset Management, pointed out that it is necessary to build an investment and research system that combines top-down and bottom-up approaches to achieve effective allocation of major asset classes.

"In the past, all we had to do was to find good companies, stocks or bond targets and adhere to long-term value-oriented principles. This paradigm was especially formed in the five years from 2016 to 2021, but now we have encountered very big challenges, and it may be difficult to overcome them in the short term." Wang Delun said that the essence of the current investment dilemma is that the decline in economic growth rate and future growth expectations has led to a decline in investment returns, which in turn has led to an asset shortage problem.

In order to meet the above challenges, Wang Delun believes that first of all, investment managers and investors need to adjust their expectations to adapt to the changes in the new macro situation. From the perspective of asset management investment practice, it is necessary to build an investment research system that combines top-down and bottom-up approaches to achieve effective allocation of major asset classes. He said that practitioners should pay more attention to more assets from a top-down perspective and look for allocation opportunities in major asset classes. In addition to commodities, precious metals, overseas assets, derivatives and alternative assets other than stocks and bonds, it is also necessary to strengthen phased and swing trading capabilities, combined with improving multi-asset selection capabilities and multi-regional allocation capabilities. This is essentially a strategy-driven methodology.

"We must both adhere to the right path and innovate. To adhere to the right path, for example, the traditional fixed income market has had relatively impressive returns in recent years. When will the current equity market, which is undervalued, turn around? To innovate, we must tap into more sources of income through multiple assets and multiple strategies. However, this generally requires a process of accumulation and consolidation," Wang Delun emphasized.