Core Viewpoint - The regulatory body is introducing a new guideline aimed at addressing the industry pain point of "funds making money while investors do not," focusing on performance assessment and compensation reforms in the public fund industry, which manages over 36 trillion yuan in assets [1] Group 1: Performance Assessment Changes - The new guideline emphasizes a performance assessment system centered on fund investment returns, moving away from the previous focus on management scale and sales revenue [2] - Long-term performance metrics will now account for at least 80% of the assessment, effectively curbing short-term speculative behavior [2] - New quantitative assessment indicators will include "fund profit margin" and "percentage of profitable investors," directly reflecting the actual gains and losses of investors [2] Group 2: Fund Manager and Executive Accountability - Fund managers managing multiple funds will have their performance evaluated based on fund size and management duration, with products managed for less than a year excluded from assessments [3] - The guideline mandates that the investment return metric for senior management must account for at least 50% of their performance evaluation [3] Group 3: Compensation Structure - A clear accountability and compensation adjustment mechanism is established, allowing for the recovery of performance bonuses if personnel fail to fulfill their duties [4] - For active equity fund managers, a tiered performance compensation adjustment mechanism is introduced, with a potential decrease of at least 30% in performance pay if their products underperform by over 10 percentage points against benchmarks [4] - The guideline emphasizes fairness and efficiency in compensation distribution, with a focus on increasing pay for frontline and grassroots employees [4] Group 4: Performance Pay Binding - Senior management and key department heads are required to invest at least 30% of their performance pay in funds managed by the company, with a minimum of 60% allocated to equity funds [5] - Fund managers must invest at least 40% of their performance pay in the public funds they manage, with a holding period of no less than one year [6] Group 5: Transition Period - A transition period is set, requiring at least 50% of products to meet performance assessment standards by 2025, and 100% by 2026 [6]