Core Insights - Morningstar was founded in the 1980s by Joe Mansueto to bridge the information gap between ordinary investors and professionals, emphasizing the importance of high-quality data and independent research [1] - Since entering China in 2003, Morningstar has combined global methodologies with local market insights, providing independent research support as the only foreign institution qualified for fund ratings in the country [1] Group 1: Investment Principles - Morningstar adheres to three core investment principles: focusing on investors, maintaining a fundamental analysis approach, and recognizing the importance of fees [2] - The company has conducted three key studies to enhance investor experience: "Fund Fees and Future Success Rates," "Active vs. Passive Weather Vane," and "Investor Return Gap" [2] Group 2: Fund Fees and Future Success Rates Study - The study indicates that fund fees are the most critical predictor of future performance, with lower fees correlating to a higher likelihood of outperforming peers and long-term survival [4] - Both in the U.S. and China, funds with lower fees tend to have better performance and survival rates, while larger fund sizes generally lead to lower fees [4] Group 3: Active vs. Passive Weather Vane Study - This research aims to reveal the probability of active funds outperforming passive funds in different market environments [9] - Over the past decade in the U.S., passive funds have significantly outperformed active funds across various market sectors, while in China, the success rate of active large-cap balanced equity funds has notably declined [10] Group 4: Investor Return Gap Study - The "Investor Return Gap" study explores why actual investor returns often lag behind fund performance, attributing this to factors like poor timing decisions [14] - The research shows significant disparities in return gaps across different asset classes, closely linked to the volatility of those assets, with higher volatility assets generally exhibiting larger return gaps for investors [14]

Core Viewpoint - The article discusses the concept of "mutual fulfillment" in the context of fund management and investor behavior, highlighting the importance of collaboration between fund managers and investors to achieve better investment outcomes [2][10]. Group 1: Fund Performance and Investor Returns - A recent report by Morningstar indicates that the five-year annualized investor return difference is negative for all fund products as of December 31, 2024 [7]. - Only passive non-sector equity products have outperformed their corresponding fund returns by nearly 3 percentage points, showcasing a unique case of positive investor return difference [8]. Group 2: Responsibilities of Fund Managers and Investors - Fund managers are tasked with enhancing research capabilities to generate substantial long-term returns for investors and improving communication regarding risk-return characteristics, especially for actively managed products [10]. - Investors need to invest time in selecting suitable funds and recognize the significance of timing in buying and selling, aiming to avoid poor investment practices such as increasing positions during price surges [10][11]. Group 3: The Role of Passive Non-Sector Equity Products - Passive non-sector equity products, particularly broad-based ETFs, exemplify "mutual fulfillment" as they clearly present risk-return characteristics and have a high proportion of institutional investors who contribute to market stability [10].

Core Viewpoints - Investors should carefully assess their risk tolerance when selecting funds, opting for those that align with their risk preferences, have experienced research teams, stable investment strategies, and robust risk control [2][3] - It is essential for investors to move beyond a single focus on returns and to construct diversified portfolios with funds that have different risk-return characteristics to mitigate risks during market volatility [2][3] - Emphasizing a long-term holding strategy can help investors avoid short-term timing and emotional decisions, leveraging time to smooth out market fluctuations and reduce the investor return gap [2][3] Summary by Sections Low Volatility Debt Products - Conservative mixed funds have an investor return gap of -0.86%, and fixed income funds have a gap of -0.62%, significantly better than the -2.65% gap of actively managed equity funds [3][23] - The lower investor return gap in debt products is attributed to their defensive nature and lower volatility, which helps reduce short-term trading impulses among investors [6][23] Passive Broad-based Products - Broad-based passive funds stand out with a positive investor return gap of 2.81%, particularly due to significant inflows from institutional investors during market lows, which did not participate in previous downturns [3][9] - The influx of funds during low market phases, especially from state-backed entities like Central Huijin, has contributed to the positive investor return gap in broad-based ETFs [9][10] Improving Investor Returns - To enhance investor returns, a collaborative ecosystem between demand and supply sides is necessary, focusing on rational decision-making and systematic fund selection frameworks [17][18] - Investors should clarify their risk preferences to ensure alignment with their investment choices, reducing decision-making errors due to risk mismatches [18] - Long lock-up periods in certain funds, such as pension target FOFs, have shown better investor return gaps, as they help mitigate frequent redemptions during market volatility [19][20]

Core Viewpoints - The article discusses the disparity in investor returns across different types of funds in the Chinese public fund market, highlighting that conservative mixed and fixed-income funds exhibit lower negative investor return differentials compared to actively managed equity funds, which have significantly higher negative differentials [2][24]. - Passive broad-based funds, particularly ETFs, show a positive investor return differential of 2.81%, attributed to significant inflows from institutional investors during market lows, which contrasts sharply with the negative differentials of actively managed equity funds [2][7][24]. - The article emphasizes the importance of investors assessing their risk tolerance and adopting a diversified investment strategy to mitigate risks and enhance long-term returns [2][24][26]. Summary by Sections Investor Return Disparities - Conservative mixed funds have an investor return differential of -0.86%, while fixed-income funds show -0.62%, both significantly better than the -2.65% of actively managed equity funds [2][24]. - The lower return differentials in conservative mixed and fixed-income funds are linked to their lower volatility and defensive investment nature, which helps reduce short-term trading impulses among investors [4][24]. Performance of Passive Broad-Based Funds - Broad-based passive funds, especially ETFs, have attracted substantial institutional investment, particularly from state-backed entities like Central Huijin, during market lows, leading to a positive investor return differential [2][7][8]. - The influx of funds into ETFs during market lows has been a critical factor in achieving a positive return differential, as these funds did not participate in the preceding market downturns [7][8]. Recommendations for Investors - Investors are advised to carefully evaluate their risk tolerance and select funds that align with their risk preferences, focusing on those with experienced research teams and stable investment strategies [2][24]. - A diversified investment portfolio that includes funds with varying risk-return characteristics is recommended to enhance resilience against market volatility [2][24][26]. - Emphasizing a long-term holding strategy can help investors avoid the pitfalls of market timing and emotional decision-making, ultimately leading to better long-term asset appreciation [2][26].

Core Viewpoints - Investors often ignore potential risks of funds due to blind chasing of high returns, leading to lower returns compared to the funds' performance. This is particularly evident in sector funds, which attract a lot of follow-up capital during market upswings but experience severe drawdowns during downturns, causing investors to sell at low points and miss subsequent rebounds [3][11]. Group 1: High-Risk Fund Characteristics - Funds with higher volatility generally exhibit greater investor return differentials. Over the past five years, sector funds, active stock funds, and actively managed funds with over 70% equity positions had annualized volatility rates of 29.05%, 23.95%, and 23.86%, respectively, while conservative mixed and fixed-income funds had much lower rates of 5.33% and 2.34%. Corresponding annualized investor return differentials for the former were -3.59%, -2.65%, and -2.17%, compared to -0.86% and -0.62% for the latter [3][4][8]. - Funds with highly concentrated holdings tend to have higher volatility and more significant investor return differentials. While concentrated strategies can yield strong returns if the fund manager selects outperforming securities, they also expose investors to substantial losses when market conditions shift rapidly [3][9]. Group 2: Sector Fund Dynamics - Sector funds, due to their focus on specific industries, exhibit more pronounced volatility. For instance, the annualized investor return differentials for medical and consumer sector funds were -7.70% and -5.16%, respectively, reflecting the impact of market conditions and investor behavior during downturns [13][15]. - A case study of the China Europe Medical Health Mixed A fund illustrates the risks associated with sector funds. After a significant rise during the pandemic, the fund experienced a drawdown of over 50% as market conditions changed, leading to a five-year annualized investor return of -17.07%, significantly lagging behind the fund's annualized return of -1.11% [14][15]. Group 3: Recommendations for Investors - Investors should establish a multi-dimensional product evaluation framework, moving beyond a single focus on returns. Understanding one's risk tolerance is crucial to avoid deviating from suitable product categories due to short-term performance temptations. When selecting funds, it is essential to analyze historical volatility characteristics and the underlying investment strategies [10][17].

Core Viewpoint - The report suggests that investors should break free from a single-minded focus on returns, actively avoid short-term timing and emotional decisions, and leverage the power of time to smooth out market fluctuations [2][6]. Summary by Sections Investor Return Gap - The report analyzes the "investor return gap" in the context of the Chinese market, focusing on the difference between fund returns and investor returns as of December 31, 2024, highlighting the impact of timing decisions on final returns [2]. - Investor returns are typically lower than fund returns due to poor timing decisions, leading to a "buy high, sell low" phenomenon [2][3]. Performance of Different Fund Types - As of December 31, 2024, the five-year annualized investor return gaps for higher-risk products like equity-focused funds are -2.17%, -2.65%, and -3.59%, while lower-risk products like conservative mixed funds and fixed-income funds show gaps of -0.86% and -0.62% respectively [3]. - Despite higher fund returns in aggressive equity funds, investor returns lag significantly due to high volatility associated with these products [3][4]. Behavioral Insights - Investors often overlook potential risks due to blind chasing of high returns, leading to lower investor returns compared to fund returns, particularly in sector funds that attract significant follow-on investments during market upswings [4]. - When sectors face downturns, investors may panic and sell at low points, missing out on potential rebounds [4]. Sector-Specific Analysis - The report highlights the investor return gaps in the healthcare and consumer sectors, with five-year annualized gaps of -7.70% and -7.11% for healthcare, and -5.16% and -5.36% for consumer sectors [5]. - The surge in demand during 2020-2021 was followed by a decline in growth, leading to net outflows from these sectors [5]. Recommendations for Investors - Investors are advised to carefully assess their risk tolerance and select funds that align with their risk preferences, emphasizing the importance of a diversified investment portfolio to mitigate risks [5][6]. - The report advocates for a long-term holding strategy, encouraging investors to avoid short-term timing and emotional decisions to enhance long-term asset appreciation [6].

Core Insights - The Chinese public fund industry has experienced explosive growth over the past decade, yet investors often realize lower actual returns compared to the fund's performance due to poor timing decisions [1] - Morningstar's report highlights the disparity between investor returns and fund returns, emphasizing the need for practical advice to help investors improve their returns [1] Investor Return Disparity - As of December 31, 2024, the five-year annualized investor return disparities for higher-risk products like equity-focused funds are -2.17%, -2.65%, and -3.59% for actively managed non-sector stocks and sector funds, respectively [2] - Lower-risk products such as conservative mixed funds and fixed-income funds show smaller investor return disparities of -0.86% and -0.62% [2] - Investors often overlook potential risks of funds due to blind chasing of trends, leading to significant losses during market downturns, particularly in sector funds [2] Recommendations for Investors - Investors should carefully assess their risk tolerance and select funds that align with their risk preferences, have experienced research teams, stable investment strategies, and robust risk controls [3] - A diversified investment portfolio with funds of varying risk-return characteristics can help mitigate risks during market fluctuations [3] - Emphasizing a long-term holding strategy can reduce the impact of poor timing decisions and enhance the potential for long-term asset appreciation [3]

Core Insights - The report highlights the disparity between fund returns and investor returns in the Chinese mutual fund market, emphasizing the impact of timing decisions on investor outcomes [1][2] - It identifies the phenomenon of "investor return gap," primarily caused by poor timing strategies leading to "buy high, sell low" behaviors [1][3] Group 1: Investor Return Gap Analysis - As of December 31, 2024, the five-year annualized investor return gaps for high-risk products like equity-focused funds are -2.17%, -2.65%, and -3.59% for actively managed equity funds and sector funds, while lower-risk products like conservative mixed funds and fixed-income funds show gaps of -0.86% and -0.62% respectively [2] - Despite high returns from actively managed and equity funds over the past five years, investor returns in these categories lag significantly due to high volatility and the tendency of investors to chase performance [2][3] Group 2: Sector-Specific Insights - The report provides examples from the pharmaceutical and consumer sectors, showing five-year annualized investor return gaps of -7.70% and -7.11% for pharmaceutical funds, and -5.16% and -5.36% for consumer funds, highlighting the risks associated with sector-specific investments [3] - The influx of capital into these sectors during periods of high demand led to significant returns, but subsequent downturns resulted in substantial losses for investors who sold at low points [3] Group 3: Recommendations for Investors - The report advises investors to carefully assess their risk tolerance and select funds that align with their risk preferences, emphasizing the importance of a diversified investment portfolio to mitigate risks [4] - It encourages a long-term holding strategy and the avoidance of emotional decision-making, suggesting that investors utilize time to smooth out market fluctuations and reduce the investor return gap [4]

扫描下方二维码或点击文末"阅读原文"进行报名，锁定最后席位！ 此次峰会将于5月22日在上海浦东香格里拉酒店举办， 报名截止日期为2025年5月20日。 欢迎注册 报名！ 作为全球资管领域极具影响力的年度盛会，晨星投资峰会（Morningstar Investment Conference， 简称MIC）历经37年积淀，今年将首度落地上海！ 晨星（中国）投资峰会由晨星中国主办，并获广州投资顾问学院、嘉信理财、易方达基金、鹏华基 金、基煜基金、盈米基金、广州投资顾问产业链投资有限公司的赞助支持。汇聚行业领袖，共探中 国买方投顾未来发展新路径！ 看点一 晨星《中国公募基金投资者回报差研究报告》 全球首发！ 过去十年，中国公募基金行业经历了爆发式增长，点燃了投资者的参与热情。然而，一个现实难 题始终困扰着投资者： 即便市场中不乏业绩亮眼的基金产品，但投资者最终落袋的实际收益，却 往往不及基金本身的业绩回报。 晨星将在此次峰会上首次揭示对中国公募基金投资者回报差的研究，深入剖析投资者回报低于基 金回报背后的潜在因素。该研究聚焦于为投资者提供实用建议，力求帮助投资者缩小投资者回报 差，以提升投资者回报。 看点二 峰会主题 ...

Core Viewpoint - The article discusses the phenomenon of "investor return gap" in the Chinese mutual fund market, highlighting that investors often experience lower returns than the funds themselves due to poor timing in buying and selling [1][4][12]. Group 1: Research Background and Methodology - Morningstar's research on investor return gap aims to analyze the differences between fund returns and investor returns, focusing on the Chinese market for the first time [2][12]. - The study categorizes various fund types, including actively managed equity funds, passive non-equity funds, and fixed-income funds, to provide a comprehensive understanding of investor behavior and timing pitfalls [12]. Group 2: Investor Return Gap Characteristics - The investor return gap is primarily attributed to the "buy high, sell low" behavior, where investors tend to buy funds after they have performed well and sell during downturns, leading to suboptimal returns [4][6]. - As of December 31, 2024, the five-year annualized investor return gaps for high-risk products like equity funds are -2.17%, -2.65%, and -3.59%, while lower-risk products like conservative mixed and fixed-income funds show gaps of -0.86% and -0.62% respectively [6][21]. Group 3: Market Trends and Influences - The Chinese mutual fund industry has seen explosive growth over the past decade, with the number of funds increasing from under 2,000 in early 2015 to over 12,000 by December 2024, complicating investors' decision-making [14][18]. - Market events, such as the 2015 stock market crash and the COVID-19 pandemic, have significantly influenced investor behavior, leading to shifts in fund flows towards lower-risk assets during periods of high volatility [17][18]. Group 4: Recommendations for Improvement - The article suggests that understanding the investor return gap can help investors make better timing decisions and avoid common pitfalls associated with emotional trading [8][23].