Core Viewpoint - The article emphasizes the significance of high-end manufacturing as a core driver of economic growth during China's economic transformation, highlighting the role of public funds in providing investment opportunities in this sector [4][5]. Fund Overview - The fund, managed by Bi Tianyu, focuses on high-end manufacturing companies and employs a growth investment strategy that combines macro industry analysis with bottom-up research [2][11]. - As of May 2025, the fund achieved an annualized return of 9.57% during the manager's tenure, outperforming the benchmark by 5.90% [22]. Performance Metrics - The fund's recent three-year and five-year annualized returns were -5.98% and 2.11%, ranking 70% and 42% among peers, respectively [22]. - The fund's Sharpe ratio during the manager's tenure was 0.52, ranking 21% among similar funds [22]. Investment Strategy - The fund adopts a concentrated investment approach, with top ten holdings accounting for 45% to 65% of the portfolio from 2019 to 2024, indicating a preference for leading growth stocks [12]. - The fund's annual expense ratio is 1.70%, slightly above the average of 1.59% for similar funds [27]. Sector Allocation - The fund's sector allocation as of December 2024 shows a significant focus on cyclical (44.22%) and technology (35.33%) sectors, compared to the benchmark [17]. Manager's Experience - Bi Tianyu has 25 years of experience in the securities industry and has been managing the fund since its inception, demonstrating a strong track record in stock selection across various sectors [5][19].

导语 2025年以来，老铺黄金以独特的中国宫廷古法制金工艺加上高颜值设计，一度出现全民 抢购的盛况；3月3日，蜜雪冰城正式在港股上市，其融资认购倍数和认购金额刷新了港 股的历史记录，成为港股新一代的冻资王；而随着潮流玩具领域的标志性事件——薄荷 色拉布布（Labubu）以108万元天价成交，新消费行业可谓赚足了眼球。对应到资本市 场，泡泡玛特、老铺黄金、蜜雪集团等头部标的轮番上涨，成为市场备受瞩目的资产。 与此同时，随着国内药企研发能力的增强，国产创新药获得国际顶尖医药公司认可，创 新药赛道也迎来爆发期，A 股与港股市场均展现出强劲的超额收益特征。截至6月20日 数据显示，中证创新药产业指数年内累计涨幅达10.97%，而中证香港创新药指数更是 上涨50.9%，成为资本市场焦点。 然而进入上周（6月16日-6月20日），两大热门板块同步出现阶段性调整：新消费领域 中，泡泡玛特周内累计跌幅12.11%，老铺黄金、蜜雪集团分别下挫13.34%、6.46%； 创新药板块亦受短期情绪影响，中证创新药产业指数和中证香港创新药指数单周分别回 调5.42%和8.53%，市场呈现获利回吐与结构分化特征。 此次震荡回调对于投资者 ...

Core Insights - Morningstar was founded in the 1980s by Joe Mansueto to bridge the information gap between ordinary investors and professionals, emphasizing the importance of high-quality data and independent research [1] - Since entering China in 2003, Morningstar has combined global methodologies with local market insights, providing independent research support as the only foreign institution qualified for fund ratings in the country [1] Group 1: Investment Principles - Morningstar adheres to three core investment principles: focusing on investors, maintaining a fundamental analysis approach, and recognizing the importance of fees [2] - The company has conducted three key studies to enhance investor experience: "Fund Fees and Future Success Rates," "Active vs. Passive Weather Vane," and "Investor Return Gap" [2] Group 2: Fund Fees and Future Success Rates Study - The study indicates that fund fees are the most critical predictor of future performance, with lower fees correlating to a higher likelihood of outperforming peers and long-term survival [4] - Both in the U.S. and China, funds with lower fees tend to have better performance and survival rates, while larger fund sizes generally lead to lower fees [4] Group 3: Active vs. Passive Weather Vane Study - This research aims to reveal the probability of active funds outperforming passive funds in different market environments [9] - Over the past decade in the U.S., passive funds have significantly outperformed active funds across various market sectors, while in China, the success rate of active large-cap balanced equity funds has notably declined [10] Group 4: Investor Return Gap Study - The "Investor Return Gap" study explores why actual investor returns often lag behind fund performance, attributing this to factors like poor timing decisions [14] - The research shows significant disparities in return gaps across different asset classes, closely linked to the volatility of those assets, with higher volatility assets generally exhibiting larger return gaps for investors [14]

Core Viewpoint - The article emphasizes the strong performance and strategic adjustments of the Jiashi Core Advantage Stock Fund, highlighting its ability to adapt to market changes while maintaining a focus on stable, high-quality stocks [2][3][8]. Fund Overview - Fund Code: 005612 - Fund Type: Shanghai-Hong Kong-Shenzhen Stock - Benchmark Index: CSI Shanghai-Hong Kong-Shenzhen Connect Comprehensive Index [1] Fund Performance - As of May 2025, the fund's annualized returns over its management period, as well as the last three and five years, are 5.69%, 2.02%, and 4% respectively, ranking 37%, 36%, and 37% among peers [2][15]. - The fund outperformed its benchmark, the CSI Shanghai-Hong Kong-Shenzhen Connect Index, by 6.91%, 2.02%, and 3.56% over the same periods [15]. Investment Strategy - The fund manager, Hu Yufei, employs a strategy focused on holding stocks with excellent business models and stable profitability, primarily in sectors such as consumer staples, information technology, pharmaceuticals, and materials [2][3][8]. - In 2024, the fund manager optimized the investment strategy by slightly increasing the allocation to change-driven assets and high-dividend stocks, reflecting a shift towards a more balanced investment style [3][8]. Fund Manager's Experience - Hu Yufei has 14 years of experience in the securities industry, with 7 years of investment experience, including research in A-share consumer and machinery sectors, as well as Hong Kong industrial stocks [4][15]. - The fund manager's expertise and the support from Jiashi Fund's research team contribute to the fund's ability to achieve excess returns in both A-share and Hong Kong markets [4][15]. Cost Efficiency - The fund's annual comprehensive fee rate is 1.78%, which is lower than the average of 2.13% for similar funds, providing cost savings for investors [21]. Asset Allocation - The fund's asset distribution includes 87.07% in stocks, 4.36% in bonds, and 5.93% in cash, with no allocation to commodities [9]. - The stock holdings are primarily in large-cap Chinese stocks (67.29%), with a minor allocation to developed markets (9.46%) [10]. Sector Allocation - The fund's sector allocation shows a significant focus on cyclical sectors (51.44%) and financial services (22.59%), with notable underweights in defensive sectors like healthcare and consumer staples [13].

Core Viewpoint - The emergence of Free Cash Flow ETFs has disrupted traditional investment strategies, attracting significant capital and reshaping market dynamics since their launch in February 2025 [1][2]. Group 1: Core Advantages of Free Cash Flow ETFs - Free Cash Flow serves as a critical indicator of a company's operational quality, revealing its ability to generate cash after covering operating costs and capital expenditures [2]. - Unlike traditional dividend or low-valuation strategies, Free Cash Flow ETFs focus on companies that can produce substantial cash flow after necessary expenses, thus avoiding high-leverage financial risks [2][3]. - The dynamic mechanism of excluding unstable cash flow companies enhances the resilience of holdings during economic cycles, providing a safety margin based on real cash flow [3][4]. Group 2: Phenomenal Growth in Four Months - The initial trading day saw over 1 billion CNY in transaction volume for Free Cash Flow ETFs, with significant growth from 694 million CNY to 3.7 billion CNY in assets under management [6][7]. - As of now, there are 23 Free Cash Flow ETF products tracking five indices, with the CSI All Share Free Cash Flow Index being the most popular among fund companies [6]. - The 10-year government bond yield falling below 2% has created a significant yield advantage for Free Cash Flow indices, appealing to institutional investors seeking stable returns [7][8]. Group 3: Multi-Dimensional Drivers of Capital Influx - Competitive pricing strategies have emerged, with some fund management fees reduced to 0.15%, significantly enhancing investor returns over the long term [11][12]. - Policy support, such as the new "National Nine Articles," emphasizes dividend distribution and market capitalization management, favoring companies with strong cash flow [14]. - The shift in investor sentiment towards risk-adjusted returns positions Free Cash Flow ETFs as a balanced investment option amid economic uncertainty [9][10]. Group 4: Future Outlook and Challenges - The market for Free Cash Flow ETFs presents both opportunities and challenges, with individual investors likely to become a new source of capital as they shift from reliance on guaranteed returns to risk-adjusted strategies [15]. - The ability to maintain liquidity and manage large-scale inflows will be crucial for fund managers, requiring effective stock selection and dynamic cash flow management [15][16]. - The sustainability of cash flow generation, disciplined execution of fund strategies, and the market's appeal to long-term capital will determine the success of Free Cash Flow ETFs in navigating economic cycles [16].

Group 1: Macroeconomic Overview - In May, the domestic macroeconomic performance showed some improvement but remained under pressure, with the manufacturing PMI rising to 49.5%, up 0.5% from April's 49.0%, indicating continued contraction [2] - The CPI in April decreased by 0.1% year-on-year, while the PPI fell by 2.7%, with the decline in production material prices contributing to the increased PPI drop [2] Group 2: Stock Market Performance - The A-share market experienced a rebound in early May due to easing US-China tariff conflicts and the implementation of central bank policies, with major indices like the Shanghai Composite Index and Shenzhen Component Index rising by 2.09% and 1.42% respectively [3] - Among 31 Shenwan industry sectors, 25 sectors saw gains, with notable increases in the environmental protection, pharmaceutical, defense, banking, and textile sectors, all exceeding 6% [3] Group 3: Bond Market Dynamics - Bond yields initially declined following the central bank's rate cuts but later rebounded due to easing signals from US-China trade tensions, with the 1-year government bond yield falling by 5 basis points to 1.46% [4][5] - The overall performance of credit bonds was better than that of interest rate bonds, with the Zhongzheng credit bond index showing a return of 0.43% [5] Group 4: Global Economic Indicators - The US Markit Composite PMI rose to 53.0% in May, indicating expansion, while the Eurozone manufacturing PMI remained in contraction at 49.4% [6] - Major global stock indices saw collective gains in May, with the S&P 500 rising by 6.15% and Brent crude oil prices increasing by 2.57% due to geopolitical tensions [6] Group 5: Fund Performance Analysis - The Morningstar China Open-End Fund Index recorded a 0.88% increase in May, with equity funds performing particularly well, driven by the strong performance of A-shares [12] - Value-style equity funds outperformed growth and balanced funds, with large-cap value funds achieving an average return of 2.76% [16] Group 6: Sector-Specific Fund Performance - Industry-specific funds, particularly in pharmaceuticals and financial real estate, showed strong performance, with average returns of 6.44% and 2.67% respectively [16][23] - Conversely, technology and communication funds underperformed, with average returns of -2.46% and -2.92% [16][23] Group 7: QDII Fund Performance - QDII funds benefited from strong performances in US and emerging markets, with global emerging market mixed funds achieving an average return of 12.89% in May [27] - However, global bond funds faced challenges, recording an average return of -0.66% due to declines in US bonds [19][27]

Core Viewpoint - The presentation by Dr. Chen Peng emphasizes the importance of buy-side advisory in enhancing the investor experience and promoting the high-quality development of public funds in China, breaking down investor returns into four dimensions: excess returns (A), benchmark returns (B), investment costs (C), and behavioral losses (Gamma) [1][2]. Group 1: Market Benchmark Returns - Long-term average returns for investors are primarily derived from beta (β), which represents market benchmark returns, indicating that investors can easily obtain this return through low-cost tools like index funds [5]. - The historical stock return rate in China over the past 20 years is approximately 10%, closely resembling that of the U.S. market [6]. Group 2: Difficulty in Achieving Excess Returns - Achieving alpha (α), or excess returns through active management, is increasingly challenging due to the rising proportion of institutional investors, leading to intensified competition [9]. - Data from Morningstar indicates that the probability of active funds outperforming the index has significantly decreased in the Chinese market [9]. Group 3: Impact of Fund Costs on Investor Experience - Fund costs, both explicit and implicit, are critical factors affecting investment returns. Explicit costs include fees that are clearly disclosed, while implicit costs, such as trading fees, are often overlooked [11]. - In 2022, 320 equity funds had implicit costs exceeding 2% due to high trading costs, with an average turnover rate of 1026%, indicating frequent buying and selling that erodes investor returns [12]. Group 4: Investor Behavioral Losses - Investor behavior, such as irrational actions like "buy high, sell low," can lead to discrepancies between actual returns and fund returns, referred to as behavioral losses (Gamma) [14]. - Morningstar estimates that investment advisors can enhance client returns by 2.45% annually by optimizing investment goals and managing behaviors, thus turning Gamma from negative to positive [14].

Core Insights - The article emphasizes the importance of "Behavioral Coaching" in helping clients navigate emotional turmoil and decision-making challenges during market volatility [1][2][3] - Behavioral Coaching can provide clients with an additional "behavioral return" of approximately 1% to 2% annually, known as "Gamma" value [2][5] Group 1: Understanding Behavioral Coaching - Many investors make irrational decisions due to a lack of understanding of their investments, being overwhelmed by social media or expert opinions, and difficulty in separating emotions from judgment [2][3] - Despite the significant value of Behavioral Coaching, clients often do not recognize it as a key service provided by advisors [5][6] Group 2: Client Perception of Behavioral Coaching - Clients may not even be aware of what Behavioral Coaching is, as the term is relatively specialized and unfamiliar to many [10] - Research indicates that clients can articulate their need for Behavioral Coaching through examples, such as expecting advisors to help them resist impulsive buying or redeeming during market fluctuations [11][12] Group 3: Providing Behavioral Coaching Effectively - Advisors should communicate the concept of Behavioral Coaching in relatable terms, emphasizing its importance as a valued service [15][16] - Sharing past client experiences and feedback can effectively demonstrate the benefits of Behavioral Coaching [17][18] - For existing clients, advisors should adopt structured communication methods and prepare clients for market volatility with actionable plans [19][20][21] Group 4: Conclusion - Enhancing the ability to provide Behavioral Coaching can help clients achieve their investment goals and improve perceived value in advisory services [22][23]

Core Viewpoints - The article discusses the disparity in investor returns across different types of funds in the Chinese public fund market, highlighting that conservative mixed and fixed-income funds exhibit lower negative investor return differentials compared to actively managed equity funds, which have significantly higher negative differentials [2][24]. - Passive broad-based funds, particularly ETFs, show a positive investor return differential of 2.81%, attributed to significant inflows from institutional investors during market lows, which contrasts sharply with the negative differentials of actively managed equity funds [2][7][24]. - The article emphasizes the importance of investors assessing their risk tolerance and adopting a diversified investment strategy to mitigate risks and enhance long-term returns [2][24][26]. Summary by Sections Investor Return Disparities - Conservative mixed funds have an investor return differential of -0.86%, while fixed-income funds show -0.62%, both significantly better than the -2.65% of actively managed equity funds [2][24]. - The lower return differentials in conservative mixed and fixed-income funds are linked to their lower volatility and defensive investment nature, which helps reduce short-term trading impulses among investors [4][24]. Performance of Passive Broad-Based Funds - Broad-based passive funds, especially ETFs, have attracted substantial institutional investment, particularly from state-backed entities like Central Huijin, during market lows, leading to a positive investor return differential [2][7][8]. - The influx of funds into ETFs during market lows has been a critical factor in achieving a positive return differential, as these funds did not participate in the preceding market downturns [7][8]. Recommendations for Investors - Investors are advised to carefully evaluate their risk tolerance and select funds that align with their risk preferences, focusing on those with experienced research teams and stable investment strategies [2][24]. - A diversified investment portfolio that includes funds with varying risk-return characteristics is recommended to enhance resilience against market volatility [2][24][26]. - Emphasizing a long-term holding strategy can help investors avoid the pitfalls of market timing and emotional decision-making, ultimately leading to better long-term asset appreciation [2][26].

Core Viewpoint - The article analyzes the investment strategies and decision-making processes of successful fund managers in China, highlighting their ability to learn from mistakes and adapt their investment approaches to enhance future portfolio returns [1]. Group 1: Zhao Xiaodong and Guohai Franklin Fund - Zhao Xiaodong has 21 years of experience in the securities industry and 15 years in public fund management, focusing on sectors like finance, food and beverage, and automotive, while also identifying opportunities in emerging trends like renewable energy and TMT [3]. - Under Zhao's management, the Guofu Small and Medium Cap Stock Fund achieved an annualized return of 10.9% from November 2010 to April 2025, outperforming the CSI 300 Index by 9.55% [3]. - Zhao reduced exposure to high-valuation sectors like food and beverage and biomedicine in 2020, decreasing the food and beverage sector's allocation from 18.53% to 5.98% and biomedicine from 11.20% to 5.68% [4][5]. - He strategically increased allocations to the banking sector, raising its share from 16.34% in mid-2020 to 27.31% by mid-2023, reflecting confidence in the sector's valuation and growth potential [6]. Group 2: Investment Lessons from Aimeike - Zhao's investment in Aimeike, which saw a 50.76% decline from June 2022 to December 2023, highlighted the risks of over-relying on historical growth data without considering industry dynamics [7][8]. - The initial investment was based on Aimeike's strong growth metrics, but subsequent market changes and increased competition led to a reassessment of the company's growth potential and valuation [8]. - This experience prompted Zhao to refine his investment process, emphasizing the need for dynamic assessments of industry conditions and company fundamentals [8]. Group 3: Yang Jiawen and E Fund - Yang Jiawen, with 13 years of experience, initially focused on consumer sectors but expanded his investment scope to include manufacturing and TMT, demonstrating a diverse investment perspective [11]. - In 2023, Yang underestimated the value of dividend stocks, leading to underperformance in his fund as the market shifted towards high-dividend assets amid economic uncertainty [12][14]. - Yang's subsequent adjustments in 2024 involved increasing allocations to high-dividend stocks, reflecting a more balanced investment approach that considers both growth and value [14][15]. Group 4: Gu Xuan and Bond Fund Management - Gu Xuan, with 19 years of experience, emphasizes a balanced approach to fixed income, focusing on credit bonds while managing interest rate risks through macroeconomic analysis [20][21]. - His management faced challenges during the pandemic, leading to a reassessment of strategies to better align with changing monetary policies and market conditions [24][25]. - Gu's adjustments in 2024 demonstrated a refined understanding of market dynamics, successfully navigating interest rate fluctuations and enhancing the fund's risk management capabilities [26][27].