Summary of Key Points from Conference Call Records Industry Overview - The conference focused on the **U.S. public fund market**, which has surpassed **$30 trillion** in total assets as of the first quarter of 2025. The market share of passive management funds exceeded that of active management funds for the first time in early 2024, reaching **53%** by April 2025. The total size of ETF products reached **$10 trillion**, growing nearly **50 times** over the past 20 years [1][8]. Core Insights and Arguments - The **fee structure** in the U.S. public fund market has significantly decreased due to the rise of passive strategies. From 2004 to 2024, the asset-weighted average fee dropped from **0.72% to 0.34%**, a reduction of over **50%**. Active management funds have an average fee of **0.59%**, while passive funds have a much lower fee of **0.11%** [1][10]. - Active management strategies are attempting to adapt to the passive wave through innovations such as index optimization and active ETFs. However, they face challenges in consistently outperforming passive funds, with a win rate of only **42%** for active funds compared to passive funds in 2024 [1][15]. - The **alpha levels** of small active management funds have significantly declined since before 2006, while large funds have maintained stable alpha levels. It is projected that the market share of active management funds will decrease to **17%** over the next 15 years, reaching a state of equilibrium [1][17]. Additional Important Insights - The **innovation direction** in the U.S. public fund industry includes the automation of index design, active ETFs, and new product and service models aimed at personalized asset allocation, which is expected to grow at a compound annual growth rate of around **10%** over the next decade [3][25]. - The **impact of AI and quantitative investment** is notable in reducing service costs and enhancing professionalism in financial services. These technologies help meet client needs more effectively and improve overall service quality [3][33]. - The **performance of different asset classes** shows that passive strategies dominate in equity funds, while active strategies still have room to operate in bond funds and certain international contexts [9]. - The **Smart Beta strategy** has an average fee of **0.16%**, with the lowest fees found in passive strategies, indicating a competitive landscape driven by investor preference for low-fee products [12][13]. - The **current trends in fintech** indicate a diversification and innovation in investment strategies, with a focus on core industries like banking expected to perform well in the next three years [2][7]. This summary encapsulates the key points discussed in the conference call, highlighting the significant trends and insights within the U.S. public fund market and the broader financial services landscape.