Core Viewpoint - The management has released a draft guideline requiring fund companies to establish performance-based salary adjustment mechanisms for active equity fund managers based on their performance relative to benchmarks over the past three years and fund profitability [1]. Group 1: Salary Adjustment Mechanism - Fund managers will face a salary reduction of at least 30% if their performance is below the benchmark by 10% [2]. - A moderate salary reduction is applicable if performance is below the benchmark by 10% [2]. - Fund managers cannot receive salary increases if their performance is within 10% of the benchmark [2]. - A moderate salary increase is allowed if performance exceeds the benchmark [2]. Group 2: Performance Analysis - Only five active equity funds have consistently outperformed their benchmarks by 5% over the past three years [3]. - The identified funds include "Fuguo Emerging Industry Stock C," "Zhaoshang Quantitative Selected Stock Initiation A/C," "Penghua Preferred Value Stock A," and "Guolian An Dividend Mixed" [3]. - Notably, these funds are managed by lesser-known fund managers rather than widely recognized figures [4]. Group 3: Fund Performance Metrics - "Fuguo Emerging Industry Stock C" achieved the highest annualized return of 28.26%, followed by "Dongwu New Energy Vehicle Stock (A/C)" with over 20%, and "Zhaoshang Quantitative Selected Stock Initiation (A/C)" around 16% [4]. - The Sharpe ratio for "Fuguo Emerging Industry Stock C" and "Zhaoshang Quantitative Selected A" is 0.71, indicating relatively good performance [5]. - "Dongwu New Energy Vehicle Stock A/C" experienced a significant drop in excess performance this year, likely due to valuation corrections in the high-growth new energy vehicle sector [5]. Group 4: Industry Insights - The new guidelines aim to strengthen the alignment of interests between fund managers and investors through quantitative metrics, addressing previous ambiguities [7]. - The market will increasingly demand that fund managers not only excel in generating alpha but also in capturing market beta [7]. - The funds mentioned are positioned within the optimal scale range of 1-5 billion yuan for active equity funds [6].