Zhong Guo Zheng Quan Bao - Zhong Zheng Wang·2025-11-02 14:28Core Viewpoint - The China Securities Regulatory Commission (CSRC) has released a draft guideline and operational details for performance benchmarks of publicly offered securities investment funds, aiming to enhance the systematic role of performance benchmarks in the fund industry and address issues like style drift and short-term ranking chasing [1][5]. Group 1: Performance Benchmark Representation - The guidelines emphasize that benchmarks should reflect the product's positioning and investment style, aligning with the fund contract's investment goals and scope [2][3]. - Fund managers are required to ensure that the performance benchmark accurately represents the fund's main investment objectives and strategies, with a prohibition on arbitrary changes once selected [2][3]. Group 2: Performance Benchmark Constraints - To prevent issues like style drift, the guidelines mandate a comprehensive control mechanism covering the selection, disclosure, monitoring, and accountability of performance benchmarks [2][3]. - An independent department must be designated to evaluate the reasonableness and potential risks of deviations from the benchmark, ensuring compliance with legal and contractual obligations [3]. Group 3: Evaluation Role of Performance Benchmarks - Fund managers are required to establish a performance assessment system centered on investment returns, linking compensation to fund performance relative to benchmarks [3][4]. - A significant decline in long-term performance compared to benchmarks should lead to a corresponding decrease in the performance compensation of fund managers [3]. Group 4: Constructing a Healthy Interactive Ecosystem - The guidelines call for fund custodians to fulfill responsibilities related to contract review and investment style supervision, ensuring a collaborative approach among all parties involved [4][5]. - Fund performance should be presented alongside benchmark performance to provide a clearer context for investors [4]. Group 5: Promoting Standardized and Transparent Investment Behavior - The previous neglect of performance benchmarks has led to issues where funds profit while investors do not, impacting investor experience negatively [5]. - The new regulatory framework aims to address these pain points and promote high-quality development in the public fund industry by establishing clear performance standards [5]. Group 6: Guiding Investors Towards Rational Decisions - The guidelines enhance the clarity and specificity of performance benchmarks, aiding investors in understanding product characteristics and forming reasonable return expectations [7][8]. - Investors are encouraged to focus on long-term strategies rather than short-term fluctuations, fostering a healthier investment culture [7][8]. Group 7: Supporting Wealth Management Transformation - As the wealth management industry shifts from sales to advisory roles, clear and reliable performance benchmarks will become essential for fund selection and portfolio management [8].