Core Viewpoint - The China Securities Investment Fund Industry Association has revised the "Performance Assessment Management Guidelines for Fund Management Companies (Draft for Comments)", which includes a performance salary adjustment mechanism for active equity fund managers based on their performance over the past three years [1][3]. Group 1: Performance Assessment Guidelines - Fund management companies must establish a tiered performance salary adjustment mechanism based on the past three years' performance compared to benchmarks and fund profitability [1]. - If a fund manager's product performance is more than 10 percentage points below the benchmark and the fund's profitability is negative, their performance salary should decrease by at least 30% [1]. - For performance below the benchmark but with positive profitability, the salary should still decrease, while those with performance above the benchmark and positive profitability may see reasonable salary increases [1]. Group 2: Fund Manager Performance - Notable fund manager Shi Cheng's products have underperformed benchmarks over the past three years, with returns ranging from -5% to 28%, lagging behind benchmarks by 18% to 48% [2]. - Specific funds managed by Shi Cheng, such as Guotou Ruijin Advanced Manufacturing Mixed and Guotou Ruijin Industry Trend Mixed A, have seen net values drop significantly, with declines of 27.97% and 27.86%, respectively, underperforming benchmarks by 47.71 and 47.5 percentage points [2]. - Shi Cheng has recently adjusted his portfolio, moving away from heavily concentrated positions in the struggling new energy sector to focus on AI and technology stocks, which has led to some recovery in fund performance [3]. Group 3: Industry Implications - The new guidelines aim to create a long-term performance assessment system that aligns the interests of fund managers with the long-term returns of investors, addressing issues of short-term incentives and soft accountability in the industry [4]. - The implementation of these guidelines is expected to shift the industry focus from mere scale expansion to value creation, trust accumulation, and high-quality development, ultimately contributing to the stability of the capital market [4]. - Attention will be needed on the detailed execution of these policies, particularly regarding the standardization of performance benchmarks and the regulation of co-investment operations to ensure that the benefits of reform reach investors [4].

Group 1 - The core viewpoint of the article is the issuance of a draft for the "Guidelines for Performance Assessment Management of Fund Management Companies" on December 6, which emphasizes performance evaluation linked to profitability metrics [1] - The draft requires that in the overall quantitative assessment, the weight of long-term investment return indicators over three years should not be less than 80% [1] - For senior management assessments, the weight of investment return indicators should be no less than 50% [1] Group 2 - Fund managers will undergo differentiated assessments, with the performance indicators for actively managed equity fund managers needing to have a weight of at least 80% [1] - Among these, the weight of performance comparison benchmark indicators must not be less than 30% [1] - For senior management responsible for sales and core sales personnel, the weight of investor profit and loss indicators should be no less than 50% [1]