Core Viewpoint - The article emphasizes the importance of independent research and prioritizing investor interests in selecting funds, particularly focusing on four noteworthy FOF (Fund of Funds) products that aim for long-term stable growth through diversified asset allocation and optimal fund selection [1]. Group 1: Fund Overview - The article introduces four FOF products, categorized into target date funds and target risk funds, designed to meet different retirement investment needs [1]. - Target date funds adjust asset allocation based on the investor's retirement date, while target risk funds maintain a preset risk level throughout their lifecycle [1]. Group 2: Fund Details - **Zhaoshang Heyue Stable Pension Target One-Year Holding Mixed (FOF)**: This conservative mixed fund targets a benchmark of 15% from the CSI 300 Index and 85% from the China Bond Composite Index, managed by an experienced fund manager with a strong background in pension investment [4][5]. - **Hongli Taihe Balanced Pension Target Three-Year Holding Mixed (FOF)**: This standard mixed fund aims for a balanced allocation of 50% equity and 50% fixed income, utilizing a tactical asset allocation strategy to achieve excess returns [7][8]. - **Zhongou Yujian Pension Target Date 2035 Three-Year Holding Mixed (FOF)**: A target date fund designed for investors retiring around 2035, focusing on asset allocation and fund selection, with a strong emphasis on risk control [11][12]. - **Ping An Pension Target Date 2035 Three-Year Holding Mixed (FOF)**: This fund incorporates a diverse asset allocation strategy, including overseas stocks, and employs a "core + satellite" approach for its equity investments [17][18]. Group 3: Investment Strategies - The investment strategies of the funds include a mix of strategic and tactical asset allocation, with a focus on maintaining a balance between risk and return [5][8][12]. - Fund managers utilize quantitative models and qualitative assessments to select underlying funds, ensuring a robust evaluation process that considers various market factors [9][14][20]. Group 4: Manager Expertise - Each fund is managed by experienced professionals with extensive backgrounds in asset allocation and pension fund management, contributing to the overall effectiveness of the investment strategies [5][8][12][18]. - The teams behind these funds emphasize collaboration and disciplined investment processes, which are crucial for achieving sustainable excess returns over the long term [6][9][20].

Core Viewpoint - Morningstar, Inc. is expanding its operations in China, specifically seeking a Regional Sales Director for East China to enhance client relationships and drive sales growth [3][4]. Group 1: Job Responsibilities - The role focuses on developing new clients and deepening cooperation with existing clients to achieve sales targets [3]. - Collaboration with product, development, and sales support teams is essential to provide suitable solutions for clients [3]. - Active participation in financial activities such as forums, seminars, and exhibitions is required to identify and explore potential clients [3]. - Accurate and timely reporting using the internal Salesforce system is necessary for managing new and renewal business contracts [3]. Group 2: Company Overview - Morningstar, Inc. and its subsidiaries provide data and research reports on various investment products, including managed investment products, public companies, and private capital markets [4]. - As of December 31, 2024, Morningstar manages and advises on assets totaling approximately $338 billion [4]. - The company operates in 33 global markets, offering investment management and advisory services [4][8]. Group 3: Candidate Requirements - Candidates should have at least 3 years of institutional sales experience or related marketing experience, preferably in the financial services sector [8]. - Experience in supporting or selling financial data and advisory solutions is preferred [8]. - Strong communication skills in both Chinese and English, along with a relevant educational background in finance, are required [8].

Core Viewpoints - The article discusses the performance differences between active and passive industry funds, highlighting that while industry funds generally exhibit high volatility, the ability of active funds to achieve excess returns varies significantly across different sectors [2][3]. Industry Funds - Within the three industry fund categories examined, passive funds often show considerable differences and may not accurately represent the overall exposure characteristics of the industry. This is compounded by significant asset concentration in some passive funds and the varying performance of sub-sectors in different years, leading to notable fluctuations in the annual victory rates of active industry funds [6]. - In 2024, active consumer industry funds outperformed larger passive funds tracking the CSI White Wine Index, with a victory rate increasing from 48.1% in 2023 to 69.9% by the end of 2024. Conversely, the victory rate for active pharmaceutical industry funds decreased from 74.4% in 2023 to 58.9% in 2024, with active consumer funds taking the lead [3][7]. - The technology, media, and telecommunications sector saw active funds' performance decline, with a victory rate dropping from 45.5% in 2023 to 19.8% in 2024, largely due to poor decision-making in sector allocation and stock selection by many active fund managers [3][9]. Consumer Industry Funds - In 2024, active consumer industry funds achieved a significant turnaround, with notable performance in home appliances, automobiles, and retail sectors benefiting from consumer subsidy policies, resulting in index increases of 25.4%, 16.3%, and 13.7%, respectively. The performance of passive funds was adversely affected by the poor showing of those tracking the CSI White Wine Index, which had a return of -17.1% [7][8]. - The overall asset-weighted average return of passive funds in the consumer sector was -7.4%, contrasting sharply with an equal-weighted average return of +4.2%, indicating that the performance of a few large passive funds significantly impacted the overall results [7]. Pharmaceutical Industry Funds - Despite a decline in the one-year victory rate for active pharmaceutical funds, they maintained the highest three-year and five-year victory rates among the examined categories. The active funds' strategies of overweighting resilient sectors like chemical pharmaceuticals and traditional Chinese medicine helped mitigate losses from underperforming areas [8][9]. - The passive funds in this category are primarily large-scale funds tracking broad indices, which allows them to better represent the overall exposure of the pharmaceutical industry [9][10]. Technology, Media, and Telecommunications Industry Funds - The one-year victory rate for active funds in this sector fell to 19.8%, with many active managers making poor allocation and selection decisions. In contrast, larger passive funds focusing on specific themes like the Sci-Tech Board and semiconductors performed well due to strong market performance in those areas [9][10]. - Over the long term, active funds in the pharmaceutical and technology sectors have shown a tendency to achieve significant positive excess returns, indicating a higher likelihood of selecting outperforming active funds in these industries [10]. Fee Reform and Future Implications - The China Securities Regulatory Commission has been progressively implementing fee reforms since July 2023, which have led to a significant decline in overall fee levels in the public fund industry. This trend may affect the comparative results between active and passive funds in the future [10][11]. - The "High-Quality Development Action Plan" released in May 2025 aims to shift fund companies' focus from "scale" to "investor returns," which may influence fund managers' investment strategies and the potential for active funds to achieve excess returns [11].

Core Viewpoint - The domestic macroeconomic environment showed signs of marginal improvement in August, with a slight recovery in manufacturing PMI and a strong performance in the stock market, while the bond market faced pressure due to the strong stock performance and changes in interest rates [3][4][5]. Economic Indicators - In August, the manufacturing PMI recorded at 49.4%, a slight increase of 0.1% from July's 49.3%, indicating improved manufacturing sentiment [3]. - The CPI remained flat year-on-year, while the PPI decreased by 3.6%, reflecting a balance between the price changes of production and living materials [3]. Stock Market Performance - The stock market performed strongly in August, with the Shanghai Composite Index breaking through 3700 and 3800 points, reaching a ten-year high [4]. - Major indices saw significant gains, with the Shanghai Composite Index and Shenzhen Component Index rising by 7.97% and 15.32%, respectively [4]. - Among 31 Shenwan industry sectors, 30 experienced gains, with notable increases in the communication, electronics, and non-ferrous metals sectors, all exceeding 18% [4]. Bond Market Dynamics - The bond market faced pressure as the stock market thrived, with the central bank implementing a 700 billion yuan reverse repurchase operation to maintain liquidity [5]. - The yield on medium to long-term government bonds increased, with the 5-year and 10-year yields rising by 6 basis points and 13 basis points to 1.63% and 1.84%, respectively [5]. - The overall return of the bond market, as reflected by the China Bond Index, fell by 0.61% in August [5]. Global Economic Context - The US Markit Composite PMI rose to 55.4% in August, while the Eurozone's manufacturing PMI increased to 50.7%, indicating positive economic performance abroad [6]. - Global stock indices showed mixed results, with the S&P 500 and Nikkei 225 rising by 1.91% and 4.01%, respectively [6]. Fund Performance - The Morningstar China Open-End Fund Index recorded a 7.94% increase in August, driven by strong A-share performance [14]. - Growth-style funds outperformed value and balanced funds, with large-cap growth equity funds achieving average returns of 17.31% [18]. - Fixed-income funds exhibited mixed results, with convertible bond funds leading with a 5.97% increase, while credit bond funds showed declines [19].

Core Viewpoint - The article highlights the performance and strategies of the Guangfa Pure Bond Fund, managed by Song Qianqian, emphasizing its focus on high-grade credit bonds and flexible trading strategies to enhance returns while maintaining a robust risk management framework [2][3][14]. Fund Overview - Fund Type: Credit Bond - Fund Size: 28.392 billion yuan as of June 30, 2025 [2]. - Fund Manager: Song Qianqian, who has 14 years of experience in bond trading and 9 years in investment management [3]. Investment Strategy - The fund primarily invests in high-grade credit bonds, utilizing flexible credit spread and interest rate spread trading strategies to enhance returns [2][7]. - The portfolio maintains a duration of 3 years or less, focusing on stable coupon income [7]. - Credit trading positions typically range from 10% to 30%, while interest rate trading positions are between 0% and 20% [7]. Performance Metrics - As of July 31, 2025, the fund achieved an annualized return of 4.16%, ranking in the 5th percentile among credit bond funds [2][14]. - The fund's volatility, measured by standard deviation, is higher than the peer average, but its risk-adjusted returns, measured by Sharpe ratio, are significantly better than the average [14]. Fee Structure - The fund's annual comprehensive fee rate is 0.66%, lower than the peer average of 0.93% [18]. Team and Research Support - The fixed income research team consists of nearly 20 members, focusing on macro strategy, credit rating, and equity research [4]. - The fund benefits from a large bond trading team, ensuring efficient execution of trades [14]. Risk Management - The fund manager sets a drawdown control target of within 2%, successfully maintaining this target during the management period [14]. - The fund's strategy has historically outperformed in volatile credit spread and interest rate environments, although it may lag in stable conditions [14].

Core Viewpoint - The article presents a comparative analysis of the performance of active and passive funds in China's A-share market, indicating that while over half of active equity funds outperformed passive funds in the long term, this trend has reversed in the short term, with less than 20% of active funds beating passive counterparts in the last year [1][9]. Methodology Changes - The report introduces two key adjustments in measuring the performance of active funds against passive benchmarks: switching from equal-weighted to asset-weighted calculations and adopting a buy-and-hold method to reflect the actual returns for investors [6][8]. Performance Analysis - As of the end of 2024, only 13.4% of active equity funds outperformed the asset-weighted average return of passive funds, a significant drop of 52 percentage points from 2023 [9]. - The performance of active large-cap balanced equity funds has notably declined, with only 19.2% surpassing the asset-weighted average return of passive funds in the last year, down from 50% in 2023 [11]. - Active large-cap growth equity funds saw a dramatic decrease in their victory rate to 9.7% in 2024 from 70.4% in 2023, primarily due to underperformance in sectors like technology [12]. - Active small-cap equity funds had a victory rate of 38.2% in 2024, which, while lower than 49.6% in 2023, remains the highest among the three fund categories analyzed [13]. Long-term Survival Rates - Active funds consistently demonstrate higher long-term survival rates compared to passive funds, with ten-year survival rates for active large-cap balanced and small-cap equity funds remaining below 5%, while passive funds range from 12% to 38% [14][15]. Excess Return Distribution - The distribution of ten-year excess returns shows that most surviving active funds achieved positive and significant excess returns, indicating a higher probability for investors to select successful active funds [16]. Market Characteristics - The A-share market in 2024 exhibited significant structural characteristics, with value stocks outperforming growth stocks, as evidenced by the 23.1% increase in the value index compared to a mere 6.0% rise in the growth index [9][10].

Core Viewpoint - The article highlights the significant inflow of funds into bond-focused Hong Kong mutual funds, particularly in light of regulatory changes and market conditions favoring fixed-income products. Fund Flow and Performance - Since the beginning of 2025 (up to July), there has been a substantial inflow into bond-type Hong Kong mutual funds, with Morgan International Bond Fund attracting the most at 16.56 billion yuan [1] - The Morgan International Bond Fund saw a net cash inflow of 16.56 billion yuan, despite some outflows in July [1] - HSBC Asian Bond Fund, while being the second most popular fund, experienced a significant outflow of over 1.2 billion yuan in July [1] - East Asia United Asian Strategy Bond Fund became the top choice for domestic investors in July, with a net cash inflow exceeding 500 million yuan [1] Company Performance - Morgan and HSBC dominated the Hong Kong mutual fund market by the end of July 2025, with fund sizes of 75.6 billion yuan and 35.7 billion yuan, respectively [1][12] - Morgan led with a net cash inflow of 19.876 billion yuan, nearly double that of HSBC [9] - East Asia United and Morgan saw the most net inflows in July 2025, while HSBC faced the most significant outflows [6] Fund Management Strategies - The investment strategies of the funds vary, with Morgan's funds showing flexibility across different types of bonds, while HSBC's strategy is more conservative, focusing on investment-grade Asian dollar bonds [1] - Schroder High Yield Equity Bond Fund recorded the highest net outflow of 1.637 billion yuan due to underperformance compared to other Hong Kong mutual funds [1]

Core Insights - The total assets under management for open-end funds and ETFs reached a record high of 29.6 trillion yuan as of June 30, 2025, with non-money market fund management size increasing from 11.3 trillion yuan at the end of 2022 to 15.3 trillion yuan, a growth of 35% [2][8]. Fund Flows and Performance - In the first half of 2025, public funds experienced a slowdown in capital inflow, with non-money market funds attracting a net inflow of approximately 315.6 billion yuan, only about a quarter of the 1.3 trillion yuan net inflow for the entire year of 2024 [11]. - Bond funds have consistently attracted the largest inflow since 2023, with a net inflow of 342.9 billion yuan in the first half of 2025, while mixed funds continued to see outflows for the fourth consecutive year [11][12]. - Stock funds saw a significant decline in net inflows, with only 77.1 billion yuan in the first half of 2025, marking the first substantial drop since 2021 [12]. - Commodity funds experienced rapid growth, achieving a net inflow of 64.3 billion yuan in the first half of 2025, nearly double the inflow from 2024, driven by rising gold prices [12]. Passive vs Active Management - The past three years have seen a breakthrough in the inflow of passive funds, which have driven the overall net inflow in the non-money market fund sector since 2022. Active funds, on the other hand, only recorded a slight net inflow of 154.1 billion yuan in 2023, with outflows in other years [14]. - Passive products have gained significant traction, particularly in bond and commodity funds, while mixed and alternative funds have seen continuous outflows due to the absence of index-based passive products [14]. QDII Fund Trends - As of June 30, 2025, QDII funds experienced a net outflow of 11.75 billion yuan, primarily due to a slowdown in inflows across most categories, despite an overall growth in QDII fund size to approximately 570 billion yuan, an 11% increase from the end of 2024 [3][24]. ETF Market Dynamics - The domestic ETF market has entered a phase of rapid growth since 2022, with a record net inflow of 1.3 trillion yuan in 2024, followed by a slight slowdown in 2025, achieving approximately 400 million yuan in net inflow in the first half of 2025 [29]. - Bond ETFs saw a significant increase in both fund numbers and asset size, with a net inflow of over 200 billion yuan in the first half of 2025, surpassing stock ETFs for the first time [31]. - The market share of the top three ETF providers, including Huaxia Fund and E Fund, accounted for 46.4% of the total market as of June 30, 2025, indicating a strong concentration in the ETF market [34]. Competitive Landscape - As of June 30, 2025, the top 10 fund companies accounted for 44% of the total non-money market fund size, with the top 20 companies holding 66%, reflecting a strengthening headwind effect in the industry [4][38]. - The competition among fund companies remains intense, with some experiencing net outflows, while others continue to grow steadily, highlighting the dynamic nature of the market [39].

Core Viewpoint - The A-share market has shown significant activity in 2025, with the Shanghai Composite Index reaching a nearly ten-year high of 3888.60 points, reflecting a strong upward trend since September 2024. The market is characterized by a clear differentiation in performance between growth and value styles, with growth stocks outperforming value stocks significantly [1][4]. Market Performance - As of August 26, 2025, the growth style, represented by the CSI 300 relative growth index, has increased by 21.26%, while the value style, represented by the CSI 300 relative value index, has only risen by 9.86%. Large-cap blue-chip stocks, represented by the CSI 300 index, have seen a 15.63% increase, whereas mid-cap stocks, represented by the CSI 500 and CSI 1000 indices, have risen by 23.28% and 26.78%, respectively [1][4]. Industry Trends - The market is currently driven by two main themes: "technology innovation leading the way" and "resource cycles gaining momentum." The technology sector, particularly AI and robotics, has emerged as a strong growth engine, with industry indices in communications, media, computing, and electronics all exceeding 30% growth this year. The resource cycle sector, particularly non-ferrous metals, has also performed well, with an industry index increase of 44.72% [4][5]. Fund Performance - Over the past decade, the annualized return of the CSI Active Equity Fund Index has been 6.67%, outperforming the CSI 300 Index's 6.07%. However, in the last three years, the ability of active equity funds to generate excess returns has diminished, with a recent annualized return of -0.04%, lagging behind the CSI 300 Index's 5.22%. Notably, in 2025, active equity funds have shown significant improvement, with a return of 26.01%, surpassing the CSI 300 Index's 15.63% [6][8]. Investment Strategies - In the current market environment favoring growth styles, funds with a clear focus on growth sectors tend to have better opportunities for returns. Fund managers with a solid framework for selecting growth stocks can capture excess returns from companies with sustainable growth potential. For risk-averse investors, GARP (Growth at a Reasonable Price) strategies offer a balanced approach by considering both growth potential and valuation [10][18]. Recommended Funds - The Fuqun Tianbo Innovation Mixed Fund, managed by experienced fund manager Bi Tianyu, has a clear growth investment strategy and has historically provided good long-term returns. The fund focuses on sectors with significant growth potential, such as pharmaceuticals, electronics, and automotive [11][14]. - The Invesco Great Wall Quality Investment Mixed Fund, managed by the experienced investor Zhan Cheng, has demonstrated strong stock selection capabilities in growth sectors like electronics and automotive, providing good returns for investors [15][16]. - The Xingquan Business Model Preferred Mixed Fund, led by the capable manager Qiao Qian, employs a GARP strategy and has historically generated excellent excess returns across market cycles [17][19]. Fixed Income Plus Funds - In a favorable stock market environment with declining interest rates, "Fixed Income Plus" products are gaining popularity among investors. These products combine fixed income assets with equity investments to provide stable returns while also capturing growth opportunities [21][22]. Conclusion - The A-share market is currently characterized by strong growth in technology and resource sectors, with active equity funds showing signs of recovery. Investors are encouraged to consider funds that align with growth strategies and those that offer a balanced approach to risk and return.

Global Fund Trends - In the first half of 2025, there was a significant turnover in the number of actively managed funds, with 3,958 new open-end funds launched, but only a net increase of 278 actively managed open-end funds. Conversely, ETFs saw a strong net growth of 1,051, with 1,264 new ETFs issued [4]. - Over $410 billion in net inflows were directed towards bond funds, which is double the amount flowing into equity funds. Meanwhile, allocation funds experienced a net outflow of approximately $20 billion [7]. Passive Investment Growth - The market share of passive investment products has steadily increased over the past decade, with the total size of global public funds growing by over 130%. As of June 30, 2025, the total management scale of passive products accounted for 43%, up from 23% ten years ago, while active products' share decreased from 77% to 57% [13]. Overseas Fund Allocation to China - There has been a noticeable recovery in the allocation ratio of overseas funds to Chinese stocks, which dropped from a peak of 11.07% in 2020 to a low of 4.79% in 2024. However, this ratio began to rise again in the second half of 2024, reaching 6.26% by the end of March 2025 [19]. - In the overseas Chinese-themed funds, passive products have surpassed active funds in scale, with passive Chinese-themed funds exceeding active funds by approximately $16 billion as of June 30, 2025 [21]. - Despite a period of net inflows from 2020 to 2022, overseas Chinese-themed funds experienced net outflows from 2023 to 2024, with total fund size decreasing from nearly $250 billion in 2021 to $175.2 billion by the end of 2024. In the first half of 2025, these funds saw a net outflow of about $2 billion, although their total size grew to $196.7 billion [23][24].