Core Viewpoint - The article discusses the performance of bank wealth management products in June, highlighting a significant recovery in product issuance and a divergence in average payout yields between open-ended and closed-end products, attributed to mismatches in product mechanisms and market conditions [1][2]. Group 1: Payout Yields and Performance Metrics - Open-ended fixed-income wealth management products achieved an average payout yield of 2.73%, up 7 basis points (BP) month-on-month, exceeding their average performance benchmark by 4 BP [2]. - Closed-end fixed-income products had an average payout yield of 2.78%, down 3 BP month-on-month, lagging behind the average performance benchmark by 16 BP [2]. - The narrowing gap between actual payout yields and performance benchmarks for closed-end products indicates a reduction in volatility over recent years, with the difference decreasing from nearly 100 BP in March 2023 to 14 BP by June 2024, before slightly widening to 16 BP in June 2023 [3]. Group 2: Performance Benchmarking and Investment Strategy - The transition to net value-based management has replaced "expected yield" with "performance benchmark," which reflects the product manager's investment strategy and market assessment [4]. - There is an ongoing debate within the industry regarding the relevance of performance benchmarks, with some arguing that wide-ranging benchmarks have lost their reference value for investors [5]. - Industry professionals emphasize the importance of performance benchmarks in guiding investment strategies, managing risk, and ensuring accountability among investment managers [6][7]. - The necessity of performance benchmarks is acknowledged, as they help in setting investment strategies and ensuring that investment managers do not take excessive risks [7][8].