Core Viewpoint - The ongoing termination of partnerships between fund managers and distribution agencies reflects a shift in the public fund industry towards a value-oriented assessment of partners, driven by rising compliance costs, fee reform impacts, and intensified competition among leading firms [1][4]. Group 1: Termination of Partnerships - As of December 9, 34 fund managers have announced the termination of partnerships with 16 distribution agencies, including independent sales institutions, banks, and futures companies [1]. - Notable terminations include Zhongyou Chuangye Fund's cessation of collaboration with Beijing Weidongli Fund Sales Co., and the complete withdrawal of Fangzheng Zhongqi Futures from fund sales, effective November 28 [2]. - The terminations predominantly involve small independent sales agencies and cross-industry participants like futures companies, which struggle to sustain resource investment in fund sales [2]. Group 2: Market Dynamics - The fund distribution industry has developed a pronounced head effect, with large distribution agencies dominating market share, client resources, and brand influence, making it difficult for smaller agencies to compete [3]. - The reform of public fund fee structures has led to a decline in management fees, custody fees, and distribution commissions, directly impacting the profitability of distribution agencies, particularly smaller ones [3]. Group 3: Compliance and Internal Control - The survival of small distribution agencies is increasingly challenged by pressures related to compliance, resources, profitability, and the need for business model transformation [4]. - Regulatory bodies have intensified compliance requirements for fund distribution, while many small agencies remain reliant on traditional sales models and lack technological investment and innovative service capabilities [4]. Group 4: Shift in Evaluation Criteria - Fund companies are shifting their evaluation criteria for distribution partners from a focus on scale to a more comprehensive and long-term assessment, considering compliance, client scale, market influence, and sales performance [4]. - This transition is part of a broader regulatory push to guide the industry from a "seller-driven" model to a "buyer advisory" model, emphasizing the creation of long-term value for clients [5]. Group 5: Strategic Adaptation - Distribution agencies are encouraged to explore differentiated services or transition into technology service providers as viable strategies to navigate the industry reshuffle [6]. - The choice of strategy should align with the agency's available resources and business strengths to effectively stand out in a competitive landscape [6].