Group 1 - The China Securities Investment Fund Industry Association has revised the "Performance Assessment Management Guidelines for Fund Management Companies (Draft for Comments)", which states that active equity fund managers with poor performance for three consecutive years may face a salary reduction of 30% [1] - Tongtai Fund, a personal public fund company, has several active equity funds that have underperformed their benchmarks over the past three years, leading to potential salary reductions for fund managers [1] - According to Tonghuashun data, most of Tongtai Fund's active equity funds have achieved positive returns this year, with many surpassing the benchmark return rates [1] Group 2 - Tongtai Fund was established in October 2018 and is the 14th personal public fund company in China, with three natural person shareholders among its main stakeholders [2] - As of the end of Q3 2025, Tongtai Fund manages a total of 22 products with an overall management scale of 4.728 billion yuan, ranking 143rd among public institutions [2] - The fund has five stock funds with a scale of 458 million yuan and nine mixed funds with a scale of 1.043 billion yuan, accounting for over 30% of its total management scale [2]

Core Viewpoint - A nearly defunct "shell fund" experienced an unexpected net value surge of 68.73% in a single day due to large institutional redemptions, misleading investors and raising concerns about the fund company's marketing practices [1][3][4] Fund Performance and Redemption - The fund's scale increased by over 10,000 times in the second quarter, successfully avoiding liquidation [1][14] - On March 31, the fund's net value surged due to a large redemption of 0.76 million shares, resulting in a -100% asset change rate and leaving a net asset of less than 10,000 yuan [3][14] - Following the redemption, the fund reopened to individual investors after previously restricting access [3][4] Marketing and Communication Practices - The fund company provided vague explanations for the net value surge, failing to clarify the true cause and instead promoting the fund's performance [4][5] - The fund's real return rate for the second quarter was -0.29%, ranking in the bottom third among mixed equity funds, while the first half of the year showed a return of 20.38%, placing it in the top 9% [4][14] - The fund's marketing emphasized its past year net value growth of 117.64%, without addressing the abnormal net value fluctuations [4][5] Industry Trends and Practices - The fund's marketing strategy included "packaging" the fund with attractive labels related to trending sectors, such as humanoid robots, to attract investors [16][18] - Many small funds are adopting similar strategies to boost visibility and attract investments, especially in a competitive market [18][19] - The China Securities Regulatory Commission emphasizes the need for transparency and prioritizing investor interests, criticizing practices that mislead investors for the sake of growth [19]

Core Viewpoint - A nearly defunct "shell fund" unexpectedly experienced a 68.73% surge in net value due to large institutional redemptions, misleading investors and raising concerns about transparency and adherence to regulatory guidelines [1][2][9] Fund Performance and Structure - The fund, Tongtai Industrial Upgrade Mixed Fund, saw its net value spike on March 31, 2025, despite a significant redemption of 0.76 million shares, resulting in a net asset value of less than 10,000 yuan [2][5] - By the second quarter, the fund's scale increased by over 3,996,023% for Class A and 820,841.40% for Class C, surpassing 150 million yuan, thus avoiding liquidation [5][6] Marketing and Communication Strategies - The fund company engaged in high-profile marketing, obscuring the true reasons behind the net value surge and failing to provide clear explanations to investors [3][4] - Following the redemption, the fund reopened to individual investors after previously restricting access, raising questions about the motivations behind this decision [3][6] Industry Practices and Concerns - The fund's unusual net value fluctuations highlight the need for greater transparency and disclosure from fund managers, especially when dealing with small-scale funds and concentrated ownership [6][9] - The trend of packaging funds with "thematic" labels to attract investors is prevalent, with many funds shifting focus to popular sectors like robotics and renewable energy to boost short-term performance [7][8] Regulatory Context - The China Securities Regulatory Commission emphasizes the importance of prioritizing investor interests and maintaining transparency in fund operations, contrasting with the practices observed in the case of the Tongtai fund [9]