Core Viewpoint - The China Securities Regulatory Commission (CSRC) has issued an action plan to promote the high-quality development of public funds, linking fund manager compensation to long-term performance, which aims to shift the focus from scale-driven growth to performance-driven results [1]. Group 1: Regulatory Changes - The new policy stipulates that fund managers will face salary reductions if they underperform their benchmarks by over 10%, while outperforming managers will receive salary increases [1]. - This regulation directly addresses industry pain points and encourages fund managers to prioritize performance over scale [1]. Group 2: Fund Manager Profile - Liu Xu, a prominent fund manager at Dacheng Fund, has 14 years of experience in the securities industry and has been with Dacheng since 2013, currently serving as the Director of the Stock Investment Department [1]. - Under Liu's management, the total scale of the seven funds he oversees reached 25.734 billion yuan, with his flagship product, Dacheng Gaoxin A, achieving a three-year return of 45.23%, significantly outperforming its benchmark by over 40% [1]. Group 3: Fund Performance - Dacheng Gaoxin A has consistently ranked among the top three in its category over the past five and ten years, with total returns of 140.96% and 317.02%, respectively [2]. - The fund has demonstrated outstanding excess returns, outperforming its benchmark by over 34% in the last two years and by 133% over the past five years [2]. Group 4: Investment Strategy - The top ten holdings of Dacheng Gaoxin A focus on industry leaders in high-barrier sectors, including telecommunications (China Mobile, China Telecom), consumer goods (Midea Group, Gree Electric), and technology (Tencent, Alibaba), reflecting a strategy of "low valuation + high certainty" [5]. - Liu emphasizes a long-term investment approach, stating that understanding enterprise value and seizing opportunities while managing risks is crucial in a rapidly changing environment [5]. Group 5: Future Considerations - The long-term performance of fund managers may validate the new regulatory direction, indicating that excess return capability is a core competitive advantage [5]. - However, there is a need to be cautious about the impact of scale expansion on strategy effectiveness, highlighting the importance of balancing compensation incentives with risk control in fund governance [5].