Market Overview - The market is experiencing fluctuations, with the main index showing signs of retreat after an upward movement, indicating a potential adjustment period ahead [1] - The current market environment is characterized by increased volatility, leading to a more conservative investment approach [2] Investment Strategy - The company has reduced its investment position from 700,000 to over 400,000, reflecting a cautious stance amid market uncertainties [1] - A focus on dollar-cost averaging and maintaining liquidity to respond to market changes is emphasized [1] Fund Investments - The company has increased its investment in the Morgan Huikai Growth Mixed Fund by 10,000, citing the fund manager's strong track record with an annualized return of 11.57% over nine years [2] - An additional investment of 5,000 has been made in the Zhongtai Kaiyang Value-Selected Flexible Allocation Mixed Fund, which has a balanced portfolio across various sectors, reducing volatility [2] - A 5,000 investment in the E-Fund CSI Military Industry Index (LOF) is noted, with expectations of growth due to stable defense spending and industry upgrades [3] Sector Analysis - The military industry is highlighted for its strong policy support and stable demand, with a focus on technological advancements and high barriers to entry [3] - The chip industry is currently facing a pullback, with the company opting to observe before making further investments [4] - The bond market is showing mixed signals, with the company maintaining its current holdings [7] - The renewable energy sector is in a consolidation phase, with plans to wait for a clearer trend before investing [7] - The Hong Kong stock market has shown some rebound but remains unstable, prompting a wait-and-see approach [7]

Core Insights - Since the release of the "Action Plan for Promoting the High-Quality Development of Public Funds" in May, a total of 49 new floating-rate funds have been announced for issuance, with 41 already established as of October 28 [1] - E Fund has launched 4 new floating-rate products, leading the market in terms of the number of such funds [1] Fund Details - The E Fund Industry Preferred (A/C: 025824/025825) is currently being issued, with management fees linked to the holding duration and return level of each share [1] - If investors hold shares for less than one year, a management fee of 1.2% per year will be charged; for holdings of one year or more, three different management fee rates apply based on annualized excess return levels [1] - The management fee structure is as follows: - 1.50% per year if the annualized return exceeds the benchmark by more than 6% - 0.6% per year if the annualized return underperforms the benchmark by 3% or more - 1.2% per year for all other scenarios [1] Investor Impact - The new floating-rate products implement differentiated charging for investors holding shares for a certain period, encouraging long-term investment and better aligning the interests of managers and investors [1]

Group 1 - The first batch of 26 new floating rate funds has been registered by the China Securities Regulatory Commission and will be issued starting May 27 [1][4] - Major fund companies including E Fund, Huaxia, Southern, and others have collectively announced the issuance schedule for these floating rate funds, with most products expected to end subscription in mid to late June [1] - The funds are structured with three fee levels: 1.2% (benchmark), 1.5% (upward adjustment), and 0.6% (downward adjustment), based on the annualized return compared to a performance benchmark [4] Group 2 - If investors redeem the funds within one year, a standard management fee at the benchmark rate will apply, regardless of performance [4] - Fund companies are deploying experienced and high-performing fund managers to manage these floating rate products [4] - To aid investor understanding of the new floating rate funds, companies plan to provide ongoing investor services and detailed explanations of fee structures, performance benchmarks, and investment strategies [4]

Core Insights - The second batch of 12 new floating rate funds has been launched, offering more diverse options in terms of fee structures and investment themes compared to the first batch of 26 funds [2][3] - The new floating rate funds align the interests of fund companies and investors by adopting a "more profit, more fees; less profit, less fees" principle, addressing previous controversies regarding management fees despite fund losses [2][3] Fund Launch and Structure - The second batch received approval from the China Securities Regulatory Commission on July 24, with some fund managers making their debut while others are returning from the first batch [3] - Three funds from this batch, including E Fund Value Return, China Europe Core Selection, and Jianxin Medical Innovation, have set a fundraising cap of 30 billion yuan for the latter [3][4] Fee Structure and Performance - The management fee structure remains performance-based, with three tiers: 1.2% for baseline performance, 1.5% for exceeding the benchmark by 6%, and 0.6% for underperforming by 3% [4][5] - Some funds have stricter thresholds for fee adjustments, such as Huatai-PB and Oriental Red Asset Management, which set the underperformance threshold at 2% [8] Fund Performance and Investor Sentiment - Among the first batch of floating rate funds, some have shown significant returns, with one fund achieving an 8% profit in its first month, while others have stagnated around a net value of 1 yuan [2][13] - As of August 1, 2025, many funds have underperformed their benchmarks, leading to investor frustration, especially as the A-share market has been rising [15][16] Fundraising and Market Response - The first batch of 26 floating rate funds raised a total of 25.86 billion yuan, with significant disparities in fundraising success among different funds [10][12] - The average subscription period for the first batch was 21.5 days, indicating a favorable market response compared to the average for equity mixed funds [10]

Group 1 - The China Securities Regulatory Commission (CSRC) has registered a second batch of 12 new floating fee rate fund products, which will be launched for sale soon [1] - Similar to the first batch, fund managers have set three fee rate levels: 1.2% (benchmark), 1.5% (upgraded), and 0.6% (downgraded) [1] - Investors redeeming the product after one year will be charged based on performance relative to the benchmark: the benchmark rate for matching performance, the lower rate for underperformance, and the upgraded rate for significant outperformance [1]

Core Viewpoint - The new floating fee rate funds are experiencing a competitive issuance phase, with significant marketing efforts from fund companies as the market recovers [2][20]. Fund Issuance and Performance - As of June 11, 2023, 24 new floating fee rate funds have been launched, collectively raising over 8 billion yuan, with nearly 20 funds surpassing the 200 million yuan threshold for establishment [2][8]. - The first batch of 16 new floating fee rate funds began sales on May 27, 2023, with some companies like Dongfanghong Asset Management achieving early success by reaching their fundraising limits quickly [3][6]. - Fund companies are employing differentiated marketing strategies, leading to varied fundraising timelines, with some companies experiencing slower sales than expected [6][8]. Fund Manager Engagement - The first batch of 26 companies receiving approval for new floating fee rate funds includes both large and smaller fund managers, showcasing a mix of experienced and emerging talent [11]. - Fund companies are demonstrating commitment by deploying seasoned fund managers and investing their own capital into the funds, with Dongfanghong Asset Management announcing a self-investment of 10 million yuan [15][18]. Innovations in Fee Structure - The new floating fee rate funds are designed to align the interests of fund managers and investors, promoting a "win-win" scenario through asymmetric fee structures that enhance investor protection [20][21]. - These funds encourage long-term holding and rational investment, aiming to smooth out short-term volatility while enhancing transparency and trust [20][21]. - The fee structure is linked to fund performance and the duration of investment, incentivizing both fund managers to seek long-term excess returns and investors to commit for longer periods [21].

Core Viewpoint - The launch of the first batch of new floating rate funds marks a significant shift in the asset management industry, redefining the profit-sharing model between fund managers and investors [1][2]. Group 1: What are New Floating Rate Funds? - New floating rate funds represent a paradigm shift towards a "shared interest" model, moving away from the traditional fixed fee structure that charges a constant percentage regardless of fund performance [3][4]. - The core rule of these funds is that management fees are dynamically adjusted based on the investor's holding period and actual returns, promoting a model where "higher returns yield higher fees" [4][5]. - The fee structure is divided into three tiers based on annualized returns: a 1.5% "reward rate" for returns exceeding 6% above the benchmark, a 0.6% "concession tier" for underperforming by more than 3%, and a neutral rate of 1.2% for other scenarios [5]. Group 2: Why is This Change Happening Now? - The emergence of floating rate funds coincides with a pivotal moment in the A-share market, driven by favorable monetary policies and a shift in capital allocation towards equity assets [10][14]. - The current policy environment, including measures to enhance dividend orientation and support for public fund development, is more robust than during previous economic challenges [18][19]. - The floating rate fund model is a strategic response to regulatory guidance and aims to break through existing market competition by seeking new growth avenues [19]. Group 3: Why is This Development Important? - The floating rate mechanism signifies a shift from prioritizing scale to prioritizing returns, fundamentally altering the revenue model for fund companies [23]. - By tying management fees to performance benchmarks, the new model imposes stricter adherence to investment strategies, reducing instances of style drift and ensuring accountability [24][25]. - The visible adjustment of management fees based on performance fosters a sense of partnership between investors and fund managers, transforming investors into active participants in the management process [26]. Group 4: Historical Context and Future Implications - The transition from a fixed management fee of around 1.5% to a more flexible floating rate system reflects the industry's evolution over the past two decades, with a policy requirement for floating rate products to constitute at least 60% of actively managed equity funds [27]. - This change is seen as a response to the need for trust and accountability in asset management, aiming to ensure that asset management consistently delivers returns for the trust placed in it by investors [29].