Core Insights - The A-share market in 2025 saw a general upward trend, with active equity funds experiencing a net value recovery, although some products continued to perform poorly over the past three years [1][11] - Among the 3,792 active equity funds with performance data over the last three years, 924 funds reported negative returns, accounting for nearly one-quarter of the total [1][11] Fund Performance Overview - The top ten funds with the largest declines over the past three years included four from CITIC Securities, with the worst performer being CITIC Securities Low Carbon Growth A, which recorded a return of -51.87%, lagging its benchmark by over 72 percentage points [3][13] - Other notable underperformers included CITIC Securities Smart IoT A at -51.65%, CITIC Securities Technology Theme 6-Month Holding A at -47.45%, and CITIC Securities Smart Living A at -46.73% [3][13] 2025 Annual Returns - In 2025, CITIC Securities Smart Living A also recorded a return of -16.33%, placing it among the top ten worst-performing active equity funds for the year [3][13] - The top ten funds with the worst returns in 2025 included several from various fund management companies, with CITIC Securities Smart Living A being one of them [4][15] Fund Manager Profile - Zhou Ziguang, a fund manager at CITIC Securities, has extensive experience in the securities industry and manages several funds focused on themes such as low carbon, technology, and IoT [5][16] - The funds managed by Zhou Ziguang have shown a consistent trend of underperformance over the past three years, despite some achieving positive returns since inception [5][16] Sector Allocation and Performance - The funds from CITIC Securities are heavily concentrated in sectors like renewable energy and power equipment, which have faced significant declines in stock prices recently, negatively impacting fund net values [7][17] - For instance, CITIC Securities Low Carbon Growth A's top three holdings have seen declines between 17% and 28% over the past three months, contributing to the fund's poor performance [7][17] Strategic Challenges - The performance of CITIC Securities' funds highlights potential strategic and risk management challenges within certain thematic investment areas [10][20] - The ability to enhance flexibility in sector allocation and improve stock selection accuracy will be crucial for these funds to recover from their current low performance [10][20]

Group 1 - The annual report of public funds for 2025 shows significant performance, with the top fund, Yongying Technology Smart A, achieving a return of 233.29% and a scale of 11.52 billion [1][9] - The second and third positions are held by Zhonghang Opportunity Leading A with a return of 168.92% and Hongtu Innovation Emerging Industry A with a return of 148.64%, with scales of 13.23 billion and 14.86 billion respectively [1][9] - The total scale of public funds reached 35.89 trillion, an increase of 3.65 trillion from the beginning of the year, with a total of 13,610 funds [5][13] Group 2 - Looking ahead to 2026, the core theme of market opportunities is expected to be driven by AI-induced industrial transformation, with a focus on fundamental verification rather than liquidity-driven optimism [2][10] - The cloud computing sector is anticipated to see sustained growth in demand due to the acceleration of AI applications, alongside stable competition in core areas like optical communication and PCB [2][10] - The investment focus is shifting from AI hardware to application sectors, particularly in smart driving, AI hardware (such as AI phones and AR glasses), and humanoid robots [3][11] Group 3 - The performance of funds over the past three years shows Dongwu New Trend Value Line leading with a cumulative return of 273.85%, followed by Dongwu Mobile Internet A at 262.23% and Huaxia North Exchange Innovation Small and Medium Enterprises Selection at 260.42% [3][11] - The bottom performers include Huafu Medical Innovation A with a return of -26.15% and CITIC Construction Low Carbon Growth A with a return of -51.87% over three years [4][12] - The public fund market has experienced sharp performance differentiation amid macro narrative changes, highlighting the potential for high-quality growth in the coming years [8][15]

Core Viewpoint - The recent reform in the public fund industry emphasizes performance, leading to potential salary reductions for nearly a thousand fund managers due to underperformance against benchmarks over the past three years [1][8]. Fund Performance and Salary Reform - According to the new regulations from the Asset Management Association of China, fund managers whose products underperform benchmarks by more than 10 percentage points and have negative profit margins will see their performance pay cut by at least 30% [1][8]. - As of December 11, 2023, out of 9,429 funds with performance data over the past three years, 1,625 funds underperformed their benchmarks by over 10 percentage points, with 55 funds lagging by more than 50 percentage points [1][8]. - Notable underperforming funds include Guangfa High-end Manufacturing A, Founder Fubon Innovation Power A, and CITIC Construction Investment Low Carbon Growth A, which underperformed by -81.11%, -73.54%, and -69.12% respectively [1][8]. Specific Fund Analysis - CITIC Construction Investment Low Carbon Growth A, managed by Zhou Ziguang, has a total fund size of 542 million yuan and has underperformed its benchmark by 69.12% over the past three years [2][9]. - Zhou Ziguang also manages CITIC Construction Investment Smart Internet of Things A and CITIC Construction Investment Smart Life A, which have underperformed by 65.51% and 54.26% respectively, with a combined fund size of 841 million yuan [2][9]. - The top holdings of CITIC Construction Investment Low Carbon Growth A have shown significant volatility, with major stocks like KOTAI Power and Weichai Heavy Industry experiencing declines of -24.96% and -23.15% respectively, while others like Sunshine Power and Deyang Co. achieved gains over 20% [2][10]. Manager Profile and Future Challenges - Zhou Ziguang has a master's degree and has been in the securities industry since January 22, 2010, with 8.55 years of investment management experience [5][13]. - Despite some periods of positive returns, such as a 26.97% gain over six months, the fund has also faced a maximum six-month return drop of -41.47%, indicating high volatility [7][15]. - The new salary regulations pose a significant challenge for managers like Zhou, who must optimize strategies and manage portfolios effectively to improve performance and meet benchmarks [7][15].

Core Viewpoint - The significant decline in net asset values of two actively managed equity funds under CITIC Construction Investment Fund has raised market concerns, highlighting potential weaknesses in asset allocation and risk control strategies [1][6][9] Group 1: Fund Performance - CITIC Construction Investment's fund "CITIC Low Carbon Growth A" has seen a cumulative net value drop of 54.59% since its inception in December 2021, underperforming its benchmark by over 40 percentage points [1][3] - In Q1 2025, "CITIC Low Carbon Growth A" experienced a net value decline of 11.07%, significantly lagging behind its performance benchmark [1] - "CITIC Smart Life A," established in November 2020, reported a net value decrease of 13.07% in Q1 2025, underperforming its benchmark by more than 14 percentage points, with a cumulative decline of 36% since inception [6][8] Group 2: Investment Strategy and Holdings - Both funds have a high concentration in photovoltaic (solar energy) stocks, with "CITIC Low Carbon Growth A" holding its top ten positions entirely in solar equipment companies [3][8] - The fund manager indicated that while the renewable energy sector has likely hit bottom, the anticipated V-shaped recovery has not yet materialized, leading to weaker performance due to a lack of investment in early-stage opportunities [8] - The top holdings of "CITIC Smart Life A" include major solar companies such as Trina Solar, JA Solar, and LONGi Green Energy, reflecting a strategic focus on the renewable energy sector [8]