Guolian Securities·2025-05-18 16:05Investment Rating - The report maintains an "Outperform" rating for the industry [1]. Core Insights - The new regulations are expected to drive fund companies to shift focus from scale to returns, establishing a floating management fee mechanism linked to fund performance [5][6]. - The report highlights a significant restructuring of assessment and incentive mechanisms, which is likely to reshape industry allocation [7][9]. - The report suggests that the new regulations will promote a more balanced industry configuration, with potential increases in allocations to underweighted sectors [19][25]. Summary by Sections Section 1: New Regulations Driving Focus on Returns - The new regulations aim to reform the floating fee mechanism and reduce costs for investors, with a target for top institutions to issue at least 60% of new active management equity funds based on performance benchmarks within a year [5]. - A performance-based assessment system will be established, with a focus on long-term investment returns, significantly impacting the compensation of fund managers based on their performance relative to benchmarks [6]. Section 2: Restructuring Assessment and Incentive Mechanisms - As of the end of 2024, over 57% of active equity funds underperformed their benchmarks by more than 10% over three years, indicating a need for regulatory changes to enhance performance [12][15]. - The report notes that the majority of active equity funds are benchmarked against the CSI 300 and the CSI 800, with significant portions underperforming [9][15]. Section 3: Balanced Industry Configuration - The report indicates that the financial sector is significantly underweighted, with banks and non-bank financials underweighted by 10.9% and 9.5% compared to the CSI 300, respectively [25]. - The insurance sector also shows a notable underweighting, with major companies like China Ping An having a significantly low allocation in active equity funds [28][37].