In recent years, the pace of trust companies' transformation to active management business has been accelerating. TOF, as a relatively novel trust product that can reflect the active management ability of trust companies, has been issued in many trust companies, and TOF business has also become a new trend of trust company transformation. Today, let's learn about TOF products and their advantages. 1. What is TOF? TOF, the abbreviation of "Trust of Funds" in English, is literally translated as "trust of funds" in Chinese. It is a trust product that specializes in investing in trust products or fund products. It is a parent trust product raised by a trust company. According to investors' risk preference, by investing in asset portfolios including Public Offering of Fund and private equity funds, the basic assets are mostly tradable financial assets in the open market, and there is no expected rate of return, thus obtaining more stable investment income for investors. Simply put, the "T" in TOF refers to this kind of trust, which is managed by a trust company, and its trust plan consists of a variety of fund combinations; "F" refers to the funds invested in TOF trust plan, including Public Offering of Fund, private equity funds, open-end funds and closed-end funds, covering a huge and complex product structure system. Therefore, investors can understand "TOF" as a trust company to help you allocate assets, reduce the investment risk level through a multi-asset and multi-strategy product portfolio, stabilize the income, control the cash withdrawal, and thus improve the income-risk ratio. In TOF's portfolio, the selected sub-funds are like a tacit team. Adjust the strategic asset allocation in the medium and long term according to market changes and asset allocation. At the same time, in the short to medium term, we will constantly adjust the allocation of tactical assets, adjust the investment ratio according to the performance of sub-funds, select better "players", define the division of labor, and maximize value creation. Second, what are the advantages of trust TOF? Compared with other investment and wealth management products, TOF has outstanding advantages, mainly in the following three aspects. First, the investment strategy is divorced from the product and the risk is dispersed. The dispersion of TOF is first reflected in the wide coverage of strategies, and each big strategy will be subdivided into sub-strategies, such as bond strategies including credit mining strategy, interest rate timing strategy, overseas debt strategy, urban investment bond strategy and so on. In terms of product form, it covers public offering, private placement and insurance asset management. , which is equivalent to concentrating all the best funds in all fields of the city and has the characteristics of diversification. Second, asset allocation is quite flexible. Flexibility is mainly reflected in dynamic adjustment. TOF will not only adjust the strategic allocation ratio regularly according to the calculation results of the quantitative model, but also adjust the tactical allocation ratio in real time according to market changes, and strive to keep the portfolio in a state of high certainty and controllable risk. Third, there are usually floating high returns. It has been about 10 years since the first TOF product in China came out. The reason why TOF didn't get enough attention in the market a few years ago was that TOF's income fluctuated. Although the annualized rate of return of this kind of products is about 10%, previous investors can safely get 8% to 9% annualized income through general trust products, so only a few investors are willing to try the newly issued TOF products. But now, in the case that the annualized rate of return of trust products in various places is mostly 7%, TOF products with high floating income have returned to the public's field of vision. Although the income will fluctuate due to the investment target, it is still higher than other types of trust products. After being tempered by the market, high-net-worth investors gradually mature and rational, no longer blindly pursue high-yield and high-risk products, realize the importance of large-scale asset allocation, and create a good environment for the development of t of. Under the background that the income of trust products continues to decline, trust companies reduce the proportion of non-standard products, and the regulatory authorities emphasize that trust should break the just-redeemed, TOF products with relatively low profile will play their unique advantages, and there is still room for expansion in the future.