Core Viewpoint - The approval of the first batch of floating management fee rate funds, including the China Europe Large Cap Select Mixed Fund, represents a significant step in the reform of public fund fee structures, aiming to align fund management fees with fund performance and enhance investor returns [1][4]. Group 1: Floating Management Fee Rate Fund - The new floating management fee model links management fees to fund performance, addressing the long-standing issue of "funds making money while investors do not" [1][2]. - The reform emphasizes the role of performance benchmarks, ensuring that fund investment styles remain consistent and transparent, thus enhancing investor trust [2][3]. - The China Europe Large Cap Select Mixed Fund is the only initiator fund among the first batch, requiring a minimum subscription of 10 million yuan and a holding period of at least three years, reinforcing the principle of shared risks and benefits between fund managers and investors [1][4]. Group 2: Industry Reform and Investor Protection - The reform marks a new phase in public fund fee structures, transitioning from fixed fee models to more flexible floating fee products, which are expected to provide investors with more choices [4][6]. - The new fee structure aims to bind the interests of fund managers and investors more closely, encouraging fund managers to enhance their active management capabilities while focusing on risk management [2][3]. - The initiative is part of a broader strategy to improve the quality of public funds, ensuring that investor interests are prioritized and fostering a positive interaction between fund managers and investors [2][6]. Group 3: Future Outlook and Industry Development - The China Securities Regulatory Commission aims to have at least 60% of newly issued active equity funds be floating fee products within a year, indicating a strong push towards this new fee structure [4][6]. - The floating fee model is expected to enhance the transparency of fund investments and stabilize market investment styles, addressing issues like "style drift" and "misalignment" that have plagued the industry [3][4]. - China Europe Fund is committed to improving its core investment research capabilities and transitioning to a more industrialized production model, focusing on delivering clearer, more stable investment products [7].

Core Viewpoint - The self-purchase of floating rate funds by fund companies is a significant way to express confidence in the market, with a total self-purchase amount reaching 100 million yuan as of June 9, 2023 [1][2][3]. Group 1: Fund Companies' Self-Purchase Activities - On June 9, 2023,交银施罗德基金 self-purchased 20 million yuan, increasing the number of fund companies participating in self-purchase to eight, with a total self-purchase amount of 100 million yuan [1]. - Fund companies such as 东方红资管, 天弘基金, 博时基金, and 中欧基金 each self-purchased 10 million yuan, while 兴证全球基金 and 大成基金 self-purchased 20 million yuan [2][3]. - The self-purchase activities reflect a commitment to aligning the interests of fund companies with those of investors, enhancing the quality of public fund development [4]. Group 2: Benefits of Floating Rate Funds - Floating rate funds optimize fee structures, reducing holding costs for investors, as management fees can decrease significantly when fund performance is poor [5][6]. - The floating fee mechanism incentivizes fund managers to enhance performance, as management fees are linked to fund performance, promoting a shift from a scale-oriented to a performance-oriented industry [6][10]. - The design of floating rate funds encourages long-term holding by reducing the impact of short-term market fluctuations on investor behavior [7][9]. Group 3: Trust and Confidence in Fund Management - The floating fee mechanism strengthens the binding of interests between investors and fund managers, fostering trust as higher fees are only earned when fund performance is strong [8][12]. - Fund companies' self-purchases, such as that of 宏利基金, demonstrate confidence in their management capabilities, further enhancing investor trust [11]. - The floating fee structure improves the overall investor experience by lowering costs during poor performance and focusing on long-term returns [9][10].

Core Viewpoint - Several fund companies in China are purchasing their own newly launched floating rate funds, indicating confidence in the long-term stability and health of the capital market and their investment management capabilities [1][3][4]. Group 1: Fund Companies' Self-Purchases - On June 9, China International Fund announced a plan to invest 20 million yuan in its newly launched floating rate fund, "China International Fund Rui'an Mixed Securities Investment Fund" [1]. - Other leading public fund institutions, including China Europe Fund, Bosera Fund, and Orient Securities Asset Management, have also announced self-purchases, with a cumulative investment amount reaching 70 million yuan [3]. - Manulife Fund announced on June 7 that it would invest 10 million yuan in its "Manulife Smart Navigation Mixed Securities Investment Fund" [3]. - On June 3, Xingzheng Global Fund stated it would invest 20 million yuan in its "Xingzheng Global Heqi Mixed Securities Investment Fund" [3]. - China Europe Fund committed 10 million yuan to its floating rate fund, "China Europe Large Cap Smart Selection Mixed Initiated Fund," with a holding period of no less than three years [3]. - Bosera Fund announced investments of 10 million yuan each in two of its equity funds on May 28, one of which is a floating rate fund [3]. - Orient Securities Asset Management stated it would invest 10 million yuan in its "Orient Red Core Value Mixed Fund" [3]. - Tianhong Fund also announced a 10 million yuan investment in its floating rate fund, "Tianhong Quality Value Mixed Fund" [4]. Group 2: Purpose and Industry Trends - The introduction of floating rate products aims to alleviate the issue where funds do not generate profits for investors while fund companies do, and to promote high-quality development within the fund industry [4]. - Industry insiders view the recent reforms in public fund fees, particularly the launch of floating rate products, as a significant exploration and attempt to drive further high-quality development in the industry [5]. - According to CITIC Securities, the weighted management fee rates of various fund products have significantly decreased compared to the end of 2022, indicating a successful fee reduction trend [5]. - The fund industry in China still has considerable room for further fee reductions compared to overseas markets, suggesting that the practice of fee reform and product innovation is ongoing [5]. - Future developments in floating rate funds may extend to bond funds, with fixed income + products being prioritized [5]. - Huabao Securities noted that the asymmetric fee structure of new floating rate products will enhance the importance of performance benchmarks, which may influence investors' decisions [5].

Core Viewpoint - The recent trend of fund companies purchasing their own floating-rate funds indicates a strategic shift towards performance-based fee structures, enhancing investor confidence and aligning interests between fund managers and investors [1][6][8]. Group 1: Fund Company Actions - On June 3, Xingzheng Global Fund announced a self-purchase of 20 million yuan in its newly launched floating-rate fund, attracting significant market attention [1]. - Other leading institutions, including China Europe Fund and Bosera Fund, have also announced self-purchases totaling over 50 million yuan, reflecting a collective push towards performance-linked fee reforms [1][2]. - The first batch of 16 floating-rate funds was launched, with a focus on linking management fees to performance, marking a significant industry shift [4][6]. Group 2: Floating-Rate Fund Mechanism - The floating-rate funds utilize a three-tier fee structure based on performance, with management fees adjusted according to the fund's annual returns relative to a benchmark [2][4]. - The fee structure includes a reduction to 0.6% if returns lag the benchmark by 3 percentage points or more, while a higher fee of 1.5% applies if excess returns exceed 6% [2][4]. - This innovative fee model aims to protect investor interests by ensuring that management fees are closely tied to fund performance [4][5]. Group 3: Industry Implications - The self-purchase trend is seen as a response to regulatory guidance and an internal need for industry reform, with a goal of increasing the proportion of floating-rate funds to 60% of actively managed equity funds within a year [6][8]. - The shift from a scale-driven to a performance-driven model is expected to enhance the quality of fund offerings and improve investor returns [8][9]. - The competitive landscape of the mutual fund industry is likely to change, favoring firms with strong investment capabilities and a focus on delivering real returns to investors [8][9].