Core Viewpoint - The strong performance of resource-themed funds has significantly contributed to the high returns of public funds in January 2026, with the top-performing funds achieving returns as high as 54.76% [1][2]. Group 1: Fund Performance - In January 2026, the top three performing funds were West China Li De Strategy Preferred, West China Li De New Power, and Qianhai Kaiyuan Gold and Silver Jewelry Mixed, with returns of 54.76%, 53.93%, and 49.30% respectively [2]. - A total of nine out of the ten top-performing funds were heavily invested in resource sectors, indicating a strong preference for cyclical stocks among fund managers at the start of the year [1][2]. - The performance of these funds reflects a shift from technology-focused investments to resource-based strategies, with only one fund in the top ten being technology-themed [1][2]. Group 2: Investment Strategies - Many top-performing funds adopted a track-focused investment strategy, aligning their portfolios predominantly with resource sectors [2]. - The West China Li De Strategy Preferred fund, which previously employed a balanced investment approach, shifted to a more focused strategy, resulting in a significant recovery in performance after a loss of 9.64% in 2025 [3]. - The fund's net value saw a notable increase of 8.12% on January 28, 2026, indicating a strategic pivot towards resource stocks [3]. Group 3: FOF Performance - Public FOF products also achieved impressive returns in January 2026, with the highest return reaching 37.12%, led by Guotai Preferred Navigation FOF [4]. - The success of these FOFs is attributed to their embrace of track-focused strategies and significant allocations to resource-themed funds, with some products showing a distinct single-industry characteristic [4][5]. - Guotai Preferred Navigation FOF's top ten holdings included six resource-themed funds, which accounted for over 56% of its total portfolio, enhancing its performance volatility and returns [4][5]. Group 4: Market Outlook - Fund managers expressed optimism for the market in the first quarter of 2026, with strategies focusing on identifying undervalued opportunities in cyclical sectors [7][8]. - The manager of the Guotai Preferred Navigation FOF highlighted a shift from valuation expansion to profit expansion in the market, planning to focus on gold, silver, and rare earth sectors [8]. - The global storage chip industry is expected to benefit from significant supply-demand mismatches, presenting opportunities for growth in the sector [7].

Core Viewpoint - The new performance evaluation system linking fund manager compensation to three-year performance benchmarks is expected to lead to changes in stock selection and investment aesthetics among public fund managers, emphasizing high-quality stock selection based on growth, cash flow, valuation, and industry advantages [1][2]. Group 1: Performance Evaluation Changes - The China Securities Regulatory Commission has introduced a new action plan to enhance the quality of public funds, which includes reforming the performance evaluation mechanism for fund companies, emphasizing long-term performance over short-term metrics [2]. - Fund managers whose products underperform the benchmark by more than 10 percentage points over three years will see a significant reduction in their performance-based compensation [1][2]. Group 2: Investment Strategies and Outcomes - Many top-performing fund managers have adopted a concentrated investment strategy, often focusing on one or two sectors, leading to the phenomenon of "three years of no gains, followed by three years of gains" [2][3]. - Examples include a fund manager whose product suffered losses in 2022, 2023, and 2024 but achieved nearly 40% returns in the first five months of 2025 due to a concentrated bet on the humanoid robot sector, resulting in a turnaround in three-year performance [3][4]. Group 3: Risks of Diversification - Fund managers employing a diversified strategy may not necessarily outperform benchmarks, as the market has shown a trend of concentrated opportunities, with only a few sectors thriving while most lag behind [5][6]. - A fund manager using a diversified approach across multiple sectors still faced significant losses over three years, indicating that diversification does not guarantee performance stability in a market characterized by sector-specific booms [6][7]. Group 4: Breaking Investment Bias - To achieve long-term performance, fund managers must break away from traditional investment biases and embrace emerging opportunities, balancing investments across both traditional and new sectors [8][11]. - A successful fund manager highlighted the importance of a diversified approach that is not limited by past industry experience, allowing for a broader perspective on investment opportunities [9][10].

Core Viewpoint - The new performance evaluation system linking fund manager compensation to three-year performance benchmarks is expected to lead to changes in stock selection and investment aesthetics among public fund managers, emphasizing high-quality stock selection based on growth, cash flow, valuation, and industry advantages [1][2] Group 1: Performance Evaluation Changes - The China Securities Regulatory Commission has introduced a new action plan to enhance the performance evaluation system for public funds, focusing on long-term performance and reducing the weight of operational metrics like scale and profit [2] - Fund managers whose products underperform the benchmark by more than 10 percentage points over three years will see a significant decrease in their performance-based compensation [2][3] Group 2: Investment Strategies and Outcomes - Some fund managers have adopted a "betting on a single track" strategy, leading to significant performance fluctuations, exemplified by a fund manager who faced three consecutive years of losses but achieved a nearly 40% return in the first five months of 2025 due to a successful bet on the humanoid robot sector [3][4] - Another fund manager focused solely on the pharmaceutical sector experienced substantial losses over three years but turned around to achieve a 50% return in 2025 as the sector gained momentum [4] Group 3: Challenges of Diversified Strategies - Fund managers employing a diversified strategy have not necessarily outperformed benchmarks, as the market has shown a trend of concentration in certain sectors, leading to more opportunities for those who focus on specific high-performing sectors [5][6] - A fund manager using a diversified approach saw significant losses over three years, with a return of less than 6% in 2025, resulting in a total three-year performance that lagged behind the benchmark [6][7] Group 4: Breaking Investment Biases - To achieve long-term performance, fund managers must balance diversified strategies with an openness to emerging investment opportunities, moving beyond biases formed during their research careers [8][10] - A successful fund manager highlighted the importance of a multi-faceted investment approach, focusing on growth and fundamentals rather than being constrained by past industry experiences, leading to a significant outperformance of benchmarks [9][10]