Core Viewpoint - A new type of floating rate fund, designed to align investor interests through a fee mechanism, is gaining attention in the market due to its characteristics of "shared profits and shared risks" [1][2]. Group 1: Floating Rate Fund Characteristics - The floating rate fund differs from traditional fixed-rate funds by dynamically adjusting management fees based on specific conditions, including fund performance and investor holding period [3]. - The example of the China Europe Value YuXiang fund illustrates a tiered management fee structure with rates of 0.6%, 1.2%, and 1.5%, depending on the holding period and performance relative to a benchmark [3][4]. Group 2: Market Context and Timing - The launch of the China Europe Value YuXiang fund coincides with a market trend favoring value styles, particularly in the fourth quarter, when investors typically seek stability and lower valuations [13][15]. - Research indicates a growing divergence between growth and value styles, suggesting that investors should focus on value-oriented investments [15]. Group 3: Fund Manager's Background - The fund manager, Liu Yong, has nine years of experience in securities and two years in fund management, with a strong emphasis on risk management and a systematic investment approach [7][8]. - Liu Yong's managed products have consistently shown positive returns, outperforming benchmarks since his tenure [9][10]. Group 4: Competitive Advantage - The floating rate fund's design encourages long-term investment, marking a shift in the industry from a scale-oriented approach to a value-oriented one [4]. - The competitive landscape for floating rate funds is expected to favor larger, well-established fund companies with robust research capabilities, such as China Europe Fund [17][18].