Core Viewpoint - The China Securities Regulatory Commission (CSRC) has released an action plan aimed at promoting the high-quality development of public funds, which includes measures to link management fees to fund performance, addressing long-standing issues in the asset management industry [2][3]. Group 1: Management Fee Structure - The new action plan introduces a floating management fee structure that ties fees to the performance of the funds, ensuring that fund companies must reduce management fees if their performance is significantly below the benchmark [2][3]. - This change aims to align the interests of fund companies, fund managers, and investors more closely, addressing the previous model where management fees were collected regardless of fund performance [2][3]. Group 2: Enhancing Accountability - The action plan increases the proportion of fund managers' investments in their own products and sets stricter lock-up periods, promoting a compensation system linked to fund performance [3][4]. - These measures are designed to enhance the sense of responsibility among fund managers and executives, encouraging them to prioritize investor interests and fund performance [3][4]. Group 3: Addressing Industry Challenges - The action plan proposes specific solutions to improve the scale and stability of equity investments in public funds, including optimizing fund registration processes and promoting innovative fund products [4][5]. - It emphasizes the importance of long-term performance assessments, with a focus on three-year evaluation periods, to encourage value investing and provide stable long-term capital support to the market [4][5]. Group 4: Overall Industry Impact - The series of measures in the action plan aims to enhance the overall service level and competitiveness of the asset management industry, injecting new vitality into the sector [5]. - The ultimate goal is to provide investors with a better investment experience, moving away from the previous "guaranteed income" model that has been criticized for its lack of accountability [5].

Core Viewpoint - The China Securities Regulatory Commission (CSRC) has released an action plan aimed at promoting the high-quality development of public funds, focusing on a performance-based floating management fee model for actively managed equity funds [1][2]. Group 1: Fee Structure and Performance Linkage - The action plan introduces a floating management fee model linked to the performance of actively managed equity funds, allowing for differentiated management fees based on the fund's performance during the holding period for eligible investors [1]. - Funds that significantly underperform compared to their benchmarks will be required to charge lower management fees [1]. - The plan aims to strengthen the alignment of interests between fund companies and investors by establishing a performance-based evaluation system that prioritizes investment returns [1]. Group 2: Industry Evaluation and Management Practices - The action plan emphasizes the need to reduce the weight of metrics such as product management scale and fund company income in the evaluation system, while increasing the focus on direct indicators affecting investor interests [1]. - It mandates higher proportions of fund managers' investments in their own products and sets requirements for lock-in periods [1]. - Fund companies are encouraged to develop compensation management systems linked to fund investment returns, with significant reductions in performance-based compensation for underperforming fund managers [1]. Group 3: Enhancing Investor Services and Fund Stability - The action plan calls for fund companies and sales institutions to optimize resource allocation around the best interests of investors, promoting long-term, value, and rational investment practices [2]. - It aims to increase the scale and stability of public fund equity investments by optimizing fund registration processes and introducing more index funds and low-volatility products [2]. - The plan reinforces the importance of performance benchmarks for fund products and implements long-term assessments of fund performance over three years to enhance stability in public fund investment behavior [2].