Market Review - The A-share market saw a decline across major indices, with the Shanghai Composite Index, CSI 1000, and CSI 300 showing returns of -0.18%, -0.52%, and -1.08% respectively, while the STAR 50, ChiNext, and SME indices lagged with returns of -3.85%, -3.01%, and -1.71% [5][13] - The consumer services, textile and apparel, and pharmaceutical sectors performed well, with returns of 4.81%, 4.43%, and 3.29% respectively, while the communication, electronics, and computer sectors underperformed with returns of -4.90%, -4.44%, and -3.72% [5][19] - The central bank's net reverse repurchase operations amounted to 626.2 billion yuan, with a total market liquidity injection of 1.122 trillion yuan [5][22] Fund Issuance - A total of 25 new funds were established last week, with a combined issuance scale of 14.173 billion yuan, showing a decrease from the previous week [3] - 56 funds were reported for issuance, including 1 QDII and several ETFs focused on artificial intelligence, electricity utilities, and food sectors [4][5] Fund Performance - Active equity, flexible allocation, and balanced mixed funds had returns of -0.52%, -0.41%, and 0.03% respectively last week [32] - Year-to-date, alternative funds have shown the best performance with a median return of 32.08%, while active equity, flexible allocation, and balanced mixed funds had median returns of 28.48%, 21.69%, and 15.07% respectively [34] ETF Market - The "Southbound ETF" expansion added 6 ETFs to the Hong Kong Stock Connect list, increasing the total from 17 to 23, including those with US stock assets [7] - Several cross-border ETFs have been highlighted for premium risks due to significant trading price discrepancies compared to net asset values [9] Growth Style Funds - Several growth-style active equity funds have announced dividends for the first time since 2021, indicating a shift in distribution strategies [10][12] - Examples include E Fund's strategy growth fund and Wanji's two-year fixed open fund, which have reported substantial returns [11][12]

Core Viewpoint - A rare occurrence of dividend distribution among growth-style active equity funds has been observed, with several funds announcing their first dividends of the year, indicating a shift in strategy and market conditions [1][2][3] Group 1: Dividend Announcements - Multiple active equity funds, including those from E Fund, have announced their first dividends of the year, allowing investors to choose between reinvestment or cash dividends [1][2] - The recent dividend distributions are notable as they come from growth-style funds, which typically focus on capital appreciation rather than income generation [3][5] - Funds like E Fund Kexun and Wanjiabj North Exchange Selection have reported significant year-to-date returns, with E Fund Kexun exceeding 100% [2][5] Group 2: Market Context - The decision to distribute dividends is attributed to the strong performance of growth sectors, particularly technology, which has led to substantial gains for fund managers [6] - The current market environment has seen a notable increase in the valuation of technology stocks, with the ChiNext 50 Index PE ratio reaching 157 times, indicating a high valuation compared to historical averages [6][7] - Analysts suggest that the distribution of dividends may serve as a strategy for fund managers to lock in profits and optimize portfolio structures amid high valuations and concentrated holdings in technology stocks [6][7]

Core Viewpoint - The trend of dividend distribution among actively managed equity funds, particularly growth-style funds, has emerged in the fourth quarter of this year, with several funds announcing dividends for the first time in years, indicating a shift in the investment landscape and a response to investor demand for cash returns [1][2][6]. Summary by Sections Dividend Distribution Trends - Actively managed equity funds, such as E Fund's Stable Growth Mixed and E Fund's Kexiang Mixed, have announced dividends for the first time since 2021, reflecting a broader trend of dividend distribution in the market [2][4]. - The E Fund Kexiang Mixed fund will distribute a dividend of 0.9 yuan per 10 fund shares, amounting to 226 million yuan based on the benchmark shares [2]. Reasons for Dividend Distribution - The dividends from actively managed funds primarily stem from capital gains rather than stock dividends, as fund managers seek to lock in profits and provide cash returns to investors [1][4]. - The strong performance of growth-style funds in the A-share market has led to substantial accumulated returns, prompting fund managers to distribute dividends to help investors secure profits and mitigate potential future market volatility [4][6]. Impact on Fund Management - Dividend distribution allows fund managers to optimize their portfolio structure by selling off high-performing stocks to generate cash for dividends, thus adjusting their holdings based on market conditions [5][6]. - The trend of dividend distribution is expected to expand from index funds to actively managed equity funds, aligning with investor preferences for stable cash flows and enhancing the overall investment experience [6][7]. Future Outlook - The increasing focus on investor satisfaction and the regulatory push towards investor return-oriented strategies suggest that more actively managed equity funds will adopt dividend distribution as a standard practice [6][7]. - The competitive landscape may accelerate the trend of dividend distribution among actively managed funds, as they seek to meet growing investor demand for cash returns [6].

Core Viewpoint - The trend of dividend distribution is expanding from traditional index funds and dividend-themed funds to actively managed equity funds, driven by strong market performance and investor demand for stable cash flow [1][5][6]. Group 1: Dividend Distribution in Actively Managed Funds - Several actively managed equity funds, particularly growth-style products, have announced dividends for the first time in years, indicating a shift in distribution practices [1][2]. - E Fund's Kexun Mixed Fund announced a dividend of 0.9 yuan per 10 fund shares, amounting to 226 million yuan, marking its first dividend since 2021 [1][2]. - E Fund's Pingwen Growth Mixed Fund and Kexiang Mixed Fund also declared dividends of 0.7 yuan and 1.6 yuan per 10 fund shares, respectively, with total distributions of approximately 37.62 million yuan and 105 million yuan [2]. Group 2: Reasons for Dividend Distribution - The dividends from actively managed funds primarily stem from capital gains rather than stock dividends, allowing fund managers to lock in profits and manage portfolio structure [1][3]. - The strong performance of growth-style funds in the A-share market has led to substantial accumulated returns, prompting fund managers to distribute dividends to mitigate potential future market fluctuations [3][5]. - Dividends serve to optimize portfolio structure by allowing fund managers to sell off high-performing stocks and reinvest in more promising opportunities [4][5]. Group 3: Market Trends and Investor Sentiment - The increasing focus on investor satisfaction has made dividend distribution a common practice among public funds, with a growing preference for cash returns among investors [5][6]. - The trend of dividend distribution is expected to continue expanding, as actively managed funds align with investor demand for stable cash flows and seek to reduce irrational redemptions caused by short-term market volatility [5][6]. - Regulatory shifts are encouraging public funds to prioritize investor returns over mere asset growth, further supporting the trend of increased dividend distributions in actively managed equity funds [6].