Core Viewpoint - The introduction of a floating management fee structure in wealth management products signifies a shift from a focus on scale to a focus on quality and performance in the industry [1][2] Group 1: Product Launch and Features - The "Zhao Zhi Rui Yuan Balanced (An Ying You Xuan) 68th" product was launched on July 8, with an issuance scale of 20 billion yuan and a closed period of 36 months [1] - The product is classified as R3 (medium risk) and primarily invests in high-grade credit bonds, high-dividend stocks, bank preferred shares, and low-correlation quantitative neutral strategies [1] Group 2: Management Fee Structure - The management fee is linked to the product's annualized return, with three tiers: 0.25% for returns at or below 1.5%, up to 0.4% for returns between 1.5% and 4%, and up to 0.5% for returns above 4% [1] - This innovative fee structure aims to align the interests of the management company and investors, enhancing transparency and trust [1][2] Group 3: Industry Trends and Implications - The wealth management industry has seen a trend of fee reductions, but reliance on low fees is deemed unsustainable for long-term growth [1] - The floating fee mechanism encourages wealth management companies to focus on performance rather than merely expanding their asset base, fostering a culture of risk-sharing and accountability [2] - Experts suggest that this shift will compel companies to enhance their research and risk management capabilities, ultimately benefiting investors through better product offerings [2]

Core Viewpoint - The approval of 26 floating fee rate funds marks a significant innovation in the public fund industry, breaking away from traditional fixed management fee structures and introducing a performance-based fee mechanism [2][15]. Group 1: Floating Fee Rate Structure - The floating fee rate structure includes three tiers: 1.2% (base), 1.5% (upward adjustment), and 0.6% (downward adjustment), with performance benchmarks set at annual returns exceeding 6% or falling below -3% [16][18]. - For holdings of less than one year, the management fee is charged at 1.2% per annum [16][18]. - After one year, the management fee is determined based on the annualized excess return compared to the performance benchmark [18][22]. Group 2: Fund Characteristics and Offerings - Sixteen funds are set to launch on May 27, with varying end dates for fundraising, the longest being August 26 for the FuGuo Balanced Allocation Fund [9][22]. - Most of the funds are equity-oriented mixed funds, with stock allocations ranging from 60% to 95% of the net asset value [9][22]. - The performance benchmarks for these funds include indices such as the CSI 800 Growth Index and the CSI 500 Index, reflecting a focus on growth-oriented investments [22][24]. Group 3: Management and Operational Requirements - The floating fee rate funds require enhanced operational management capabilities and robust data processing systems to track each fund share's holding period and performance accurately [25][26]. - Fund companies are preparing by establishing comprehensive management guidelines and risk control measures to ensure efficient operation during the product issuance and management phases [25][26]. - The new fee structure aims to align the interests of fund managers and investors, promoting a shared responsibility for investment returns [23][26].

Core Viewpoint - The "Action Plan for Promoting High-Quality Development of Public Funds" marks a systematic reform phase in the public fund industry, focusing on investor interests and returning to the essence of "entrusted management" [1] Fee Reform - The plan promotes a floating management fee mechanism for actively managed equity funds, linking fees to performance against benchmarks, addressing the issue of "funds making money while investors do not" [2][3] - The floating fee model aims to enhance the accountability of fund companies, compelling them to improve investment capabilities and focus on long-term value creation [2] Interest Binding - The core of the public fund reform is "interest binding," which strengthens the alignment of interests among fund companies, fund managers, and investors, marking a shift towards prioritizing "investor returns" [4][5] - The plan defines fund performance metrics and emphasizes long-term performance in fund manager evaluations, with at least 80% weight on product performance metrics [6] Future Outlook - The shift in evaluation focus from management scale to investor returns is expected to create a virtuous cycle of "increased returns—capital inflow—market stability," fostering a healthier and more vibrant capital market ecosystem [7]