Core Viewpoint - The article emphasizes the reform of the assessment and incentive mechanisms for public funds in China, focusing on performance, long-term results, and benchmarks as key elements for high-quality development [1][3]. Group 1: Regulatory Changes - On May 7, the China Securities Regulatory Commission (CSRC) released an action plan aimed at promoting high-quality development in public funds, which includes reforming the assessment and incentive mechanisms for fund companies, personnel, and products [1]. - The new regulations require fund managers to disclose the reasons for selecting performance benchmarks and allow for modifications to these benchmarks under certain conditions [1]. Group 2: International Practices - The design goals of overseas fund assessment mechanisms focus on achieving long-term stable excess returns, characterized by benchmarking, long-term perspectives, and diversification [2]. - In the U.S. and Europe, performance benchmarks are used as evaluation tools for fund managers, with the U.S. introducing the AIMR-PPS in 1993 and the GIPS standards by CFA in 1999 to establish global benchmarks [2]. - The assessment periods in the U.S. have shifted from short-term (1-3 years) to medium and long-term (5-10 years), with firms like JPMorgan incorporating 10-year performance metrics [2]. Group 3: Recommendations for China's Fund Industry - China's fund industry can learn from international experiences to establish a benchmark-based long-cycle assessment and incentive mechanism [3]. - The U.S. uses a single, converging benchmark (S&P 500) for easier horizontal comparisons, while Europe employs a more diversified approach with indices like MSCI for differentiated development [3]. - The article suggests focusing on index-weighted stock allocation opportunities under the new regulatory framework, as the performance of actively managed equity funds is expected to align more closely with benchmarks [3].