Core Insights - The first batch of floating fee rate funds has been launched, with a total of 13 funds raising a combined amount of 12.696 billion RMB, averaging 977 million RMB per fund, indicating initial market acceptance of this fee structure reform [1][2]. Fund Performance - The top-performing funds in terms of scale include E Fund's Growth Progress with 1.703 billion RMB and 47,301 subscriptions, followed closely by Oriental Red Core Value at 1.991 billion RMB with 14,585 subscriptions [2][3]. - The lowest performing fund was Bosera's Zhuo Rui Growth, which raised only 259 million RMB, reflecting limited investor appeal amid a crowded issuance environment [2]. Subscription Dynamics - Subscription numbers varied significantly among the funds, highlighting different customer structures and sales strategies. E Fund's Growth Progress not only led in scale but also had a high subscription count of 47,301, with an average subscription amount of only 36,000 RMB, indicating strong retail investor engagement [3]. - Other funds like Ping An Value Enjoyment and Huaxia Rui Xiang Return also had over 10,000 subscriptions, showcasing a solid retail base [3]. - In contrast, Bosera's Zhuo Rui Growth and Manulife's Smart Navigation had lower subscription counts, with 1,946 and 5,237 respectively, indicating a less broad appeal [3]. Industry Implications - The launch of floating fee rate funds marks not only product innovation but also a potential restructuring of the industry ecosystem, shifting from a "scale-first" approach to a model centered on "investor returns" [3].

Core Viewpoint - The public fund market is experiencing a new trend with the emergence of floating fee rate funds, which have shown significant differentiation in their fundraising performance [1][2][4]. Fundraising Performance - The fundraising situation for new floating fee rate funds is notably varied, with some funds achieving strong sales and even ending their fundraising early, such as the Oriental Red Core Value Fund, which ended its fundraising on June 4, 2023, ahead of the scheduled date [4][5]. - Specific sales figures include: - E Fund Growth and Progress Mixed Fund sold 433 million RMB through the Bank of China channel - Harvest Growth and Win Fund sold 361 million RMB through the Bank of China channel - Tianhong Quality Value Fund sold 355 million RMB through the Pudong Development Bank channel - Great Wall Ultimate Return Mixed Fund sold 210 million RMB through the Industrial and Commercial Bank of China channel - Wanji New Opportunity Shared Mixed Fund sold 43.08 million RMB through the Industrial and Commercial Bank of China channel - Jiao Yin Rui An sold 59 million RMB through the Pudong Development Bank channel [1][5]. Market Trends - Since the first batch of floating fee rate funds was launched on May 27, 2023, the market has seen a continuous rise in interest, with 124 public funds opening for subscription in May, averaging a subscription period of 20.05 days [2][6]. - In June, despite only four trading days in the first week, 36 new products were launched, with floating fee rate funds being the highlight of the new offerings [2]. Industry Participation - Several well-known fund companies, including Tianhong Fund, Bosera Fund, and Xingzheng Global Fund, have actively participated in launching floating fee rate funds and have invested their own capital to support these new products, indicating confidence in this innovative model [2][6]. Challenges and Future Outlook - The introduction of floating fee rate products represents a significant innovation in the public fund industry, requiring fund companies and managers to adapt to new operational demands, such as real-time tracking of management fees based on holding periods and performance [6]. - The industry anticipates that self-purchase by fund companies may become a new norm, with leading institutions accelerating their involvement in such products, promoting a healthier model focused on investor interests [6].

Core Viewpoint - The approval of the first batch of new floating rate funds represents an innovative approach to fund management fees, which are now tiered based on fund performance relative to benchmarks [2][3]. Fund Management Fee Structure - The new floating rate funds implement a tiered management fee system based on performance, with three scenarios for investors holding for one year or more [5][6][7]. - For investors holding for less than one year, a flat management fee of 1.2% is charged regardless of fund performance [4]. - If the fund's annualized return exceeds the benchmark return by 6%, a management fee of 1.5% is applied [5]. - If the fund's annualized return is less than the benchmark return by 3%, a reduced fee of 0.6% is charged [6]. - All other performance scenarios result in a management fee of 1.2% [7]. Investor Suitability and Market Impact - The high holding period requirement suggests that these funds are more suitable for long-term investors rather than short-term traders [8]. - The small difference between the highest and lowest management fees may limit the attractiveness of these funds to investors [3][8]. - The introduction of floating rate funds aligns the interests of fund companies and investors, promoting a shared risk model [8]. Future Trends in Fund Management - The approval of these funds may lead to more innovative products in the future, enhancing investor choices [8]. - The shift towards performance-based fee structures indicates a significant change in how fund managers will be evaluated, moving away from merely growing assets under management [8]. - As fund managers focus more on asset allocation and performance, the pressure to deliver superior returns will increase, benefiting both investors and fund managers [9].