Core Conclusions - The top five sectors for active fund accumulation in Q2 2025 are telecommunications, pharmaceuticals, non-bank financials, banking, and military industry, indicating a shift in investment logic towards these sectors due to overseas computing power and innovative drug trends [10][11] - The reduction in holdings is primarily seen in food and beverage and automotive sectors, with food and beverage representing core assets and automotive linked to anti-involution trends [10] Asset Allocation and Sector Distribution - The allocation for active equity funds in Q2 2025 shows a significant increase in midstream manufacturing to 41.86% (up 1.58 percentage points), while downstream consumption decreased to 34% (down 2.98 percentage points) [19] - The overall allocation for upstream raw materials is 9.29% (down 0.26 percentage points), financial and real estate sectors increased to 7.93% (up 1.67 percentage points), and support services remained stable at 6.8% (down 0.03 percentage points) [19] Upstream Raw Materials - The allocation in upstream raw materials shows a slight recovery, with non-ferrous metals at 4.65% (up 0.15 percentage points) and basic chemicals at 2.95% (unchanged), while coal and steel sectors saw declines [24] - The top three sectors with increased allocation are precious metals at 1.08% (up 0.11 percentage points), glass and fiberglass at 0.19% (up 0.11 percentage points), and energy metals at 0.32% (up 0.09 percentage points) [24] Midstream Manufacturing - Telecommunications saw a significant increase in allocation to 5.33% (up 2.39 percentage points), while defense and military industry reached 4.17% (up 0.99 percentage points) [28] - The electronics sector remains dominant at 18.67% (down 0.07 percentage points), with notable declines in machinery and power equipment sectors [28] Downstream Consumption - The pharmaceuticals sector increased to 10.91% (up 0.37 percentage points), while food and beverage decreased to 6.74% (down 2.08 percentage points) [33] - The automotive sector allocation is at 6.33% (down 1.49 percentage points), with significant declines in the white wine sector [33] Financial and Real Estate - The banking sector allocation increased to 4.88% (up 1.12 percentage points), while non-bank financials rose to 1.85% (up 0.76 percentage points) [3] - Real estate remains at a low allocation of 0.68% (down 0.19 percentage points), indicating a cautious approach towards this sector [3] Support Services - The allocation in support services is led by transportation at 1.97% (up 0.32 percentage points), while computer services saw a decline to 2.59% (down 0.53 percentage points) [3]