Core Viewpoint - The "Action Plan for High-Quality Development of Public Funds" released by the China Securities Regulatory Commission (CSRC) aims to reshape the fund industry ecosystem and significantly influence the behavior of fund managers and investors [1][2]. Summary by Sections Regulatory Changes - The CSRC has emphasized the importance of performance benchmarks for public funds, requiring fund companies to establish a compensation management mechanism linked to investment returns and to improve industry assessment and evaluation systems [1][2]. - A clear performance benchmark will be set for each fund to avoid issues like style drift and misalignment with product names and positioning [2]. Industry Response - As of May 7, 2023, at least 61 fund products have changed their performance benchmarks, a significant increase from 19 in the same period last year, indicating a strong signal of accelerated industry standardization [1][2]. - Some fund companies had already anticipated these regulatory changes and made adjustments in advance [2]. Benchmark Adjustments - Specific funds have updated their performance benchmarks to better reflect their investment strategies, such as changing from the CSI 300 Index to more relevant indices like the CSI TMT Industry Theme Index [3][5]. - In the bond fund category, adjustments have also been made, with some funds shifting their benchmarks to better align with their investment focus [3]. Investor Awareness - Despite the importance of performance benchmarks, many investors remain largely unaware or indifferent to them, often focusing more on absolute returns rather than relative performance against benchmarks [6]. - The CSRC's new regulations aim to correct this oversight by linking fund manager assessments directly to performance benchmarks, thereby enhancing the evaluation of fund performance [7][8]. Implications for Fund Managers - The new benchmark regulations are expected to help fund managers focus their investment strategies more effectively, reducing the likelihood of style drift and promoting a clearer investment approach [8]. - Fund managers will be evaluated based on their performance relative to these benchmarks, which could lead to more stable and predictable fund styles for investors [8].