Core Viewpoint - The performance and scale of interbank certificate of deposit (CD) index funds are under pressure due to a low interest rate environment, with an average net value growth rate of only 0.63% this year, which is lower than that of short-term bond funds and floating net value money market funds [1][3][4]. Group 1: Performance and Scale Challenges - The average net value growth rate of interbank CD index funds is 0.63%, which is below the 0.91% and 0.71% of short-term bond funds and floating net value money market funds, respectively [3][4]. - As of the end of Q1, the total scale of interbank CD index funds was 1089.52 billion, a decrease of nearly 490 billion, or 31%, from the end of last year [3][4]. - Nearly 90% of the products experienced a scale shrinkage in Q1, with over 40 funds having a scale of less than 200 million, accounting for over 40% of the total [3][4]. Group 2: Factors Affecting Performance - The performance of interbank CD index funds is closely tied to short-term funding market rates, with low interest rates leading to reduced coupon income and limited investment scope [4][6]. - The liquidity constraints of a 7-day holding period further diminish the attractiveness of these funds [4][6]. - In contrast, money market funds and short-term bond funds have maintained better performance due to their active management advantages and flexible asset allocation strategies [5][6]. Group 3: Future Outlook and Strategies - Despite the scale shrinkage, there is potential for increased attractiveness of interbank CD index funds as cash management tools in a low interest rate environment [8][12]. - The future performance of these funds will depend on the central bank's liquidity stance and the dynamics of market supply and demand [9][10]. - Fund managers are expected to enhance product competitiveness through strategies such as optimizing portfolio structures and designing differentiated holding periods and fee structures [13][14].