Core Viewpoint - The China Securities Regulatory Commission (CSRC) has issued an action plan to promote the high-quality development of public funds, introducing a performance-based compensation mechanism for fund managers that links their pay to long-term performance, addressing the industry's longstanding issue of "scale over performance" [1][7]. Summary by Sections Regulatory Changes - The new action plan specifies that if a fund manager's product underperforms its benchmark by more than 10 percentage points over three years, their performance pay will be significantly reduced; conversely, if they outperform, their pay may be increased [1][7]. Fund Manager Performance - Data shows that among 111 fund managers with over 10 billion yuan in assets, 45 underperformed their benchmarks, with 24 of them lagging by more than 10 percentage points [3][5]. - Notable underperformers include Zheng Chengran from GF Fund, whose three-year return was -45.12%, trailing the benchmark by 45.14 percentage points [4][5]. Impact on Fund Companies - Major fund companies like E Fund and GF Fund have multiple managers facing potential pay cuts due to underperformance, indicating a significant performance disparity within the industry [6][7]. - The new regulations may encourage fund companies to strengthen their research teams and reduce reliance on individual star managers, as evidenced by mid-tier managers like Lu Bin and Zhao Yi, who have substantial assets but significant underperformance [6][7]. Long-term Implications - The new rules are expected to push the industry back to its asset management roots, making long-term performance a critical factor for fund managers' careers and potentially reducing risks for investors [7].