Core Viewpoint - The recent submission of a new batch of floating management fee rate funds by 26 fund companies marks a significant development in the public fund industry, emphasizing investor interest protection and long-term investment guidance [1][8]. Group 1: New Fund Submission - On May 16, the first batch of new model floating management fee products was accepted by the CSRC, involving 26 fund managers, including 21 leading firms and 4 smaller firms [1]. - The submitted products are primarily market selection equity funds, benchmarked against major indices such as the CSI 300 and CSI 500 [1]. Group 2: Fund Design and Fee Structure - The new fund designs focus on enhancing investor interests, aligning with the "Action Plan" that establishes a performance-based floating management fee mechanism [2]. - The fee structure allows for different management fee rates based on the fund's performance relative to a benchmark, with lower fees applied when performance is below the benchmark and higher fees when performance exceeds it [2][8]. - The design emphasizes asymmetric adjustments to fees, with more significant reductions when performance lags behind the benchmark compared to increases when performance exceeds it [2]. Group 3: Historical Context and Evolution - The floating management fee rate mechanism has evolved since its inception in 1999, with various models emerging over the years, including performance-linked fees and tiered fee structures [3][4][6]. - Recent innovations include a model where 50% of the basic management fee is performance-based, and another where fees vary based on the investor's holding period [6][7]. Group 4: Industry Impact and Future Outlook - Industry experts believe the new floating management fee funds will enhance the alignment of fund managers' income with investors' actual returns, promoting long-term investment and reducing irrational trading [8]. - The introduction of these funds is seen as a deep optimization of product supply in the industry, potentially leading to clearer strategies and defined risk-return characteristics [8].