Core Viewpoint - The public fund industry is experiencing a wave of fee reductions, which is seen as a necessary step to enhance investor experience and shift the focus from scale to performance-driven management [1][4][5]. Group 1: Fee Reduction Actions - Since July 2023, several leading fund companies, including E Fund and ICBC Credit Suisse, have announced reductions in management and custody fees across various fund categories, including bond, mixed, and money market funds [2][3]. - E Fund reduced the custody fee for two bond funds from 0.1% to 0.05%, while also lowering management fees for these funds earlier in May [2]. - ICBC Credit Suisse adjusted the management fee for its mixed fund from 1.2% to 0.8%, and other companies like Guotai Asset Management and Dongwu Asset Management have also made similar fee adjustments [2][3]. Group 2: Impact of Fee Reform - Over the past two years, approximately 4,295 fund products have implemented fee reductions, accounting for over 40% of existing products, with a total fee reduction of 24.467 billion yuan, representing an 11.33% decrease [1][3][5]. - The total fees collected by the public fund industry reached 191.537 billion yuan last year, while the total scale of products was 32.76 trillion yuan, indicating a significant reduction in fees despite a 26.45% increase in total scale compared to the previous year [5]. - The industry is transitioning from a scale-oriented approach to one focused on investor returns, which is expected to enhance the quality of services and investment performance [6][7]. Group 3: Future Directions and Innovations - The industry is exploring new fee structures, such as performance-based floating management fees, which are linked to fund performance, as part of the "Action Plan for Promoting High-Quality Development of Public Funds" [7]. - A total of 26 new floating fee funds have been successfully raised, with 24 products collecting 22.68 billion yuan, indicating a growing acceptance of this model [7]. - Fund companies are also adjusting their performance evaluation mechanisms to focus on long-term investor experience and returns, moving away from short-term scale-driven incentives [7].

Core Viewpoint - The article highlights a significant trend in the mutual fund industry, where over 20 funds have announced fee reductions within the first seven trading days of July, indicating a continued push for lower costs for investors as part of ongoing reforms in the public fund fee structure [1][3]. Summary by Sections Fee Reductions Announced - More than 20 funds have officially announced fee reductions since the beginning of July, including mixed, bond, money market, and FOF products [1][3]. - Notable examples include: - E Fund reduced the custody fee for two bond funds from 0.10% to 0.05% [3]. - Guotai Junan Fund lowered the management fee for its flexible allocation fund from 0.90% to 0.55% [3]. - Guotai Fund decreased the management fee for its fixed-term open fund from 0.40% to 0.30% and the custody fee from 0.10% to 0.05% [3]. - Fortune Fund adjusted the management fee for its pension target date fund from 0.60% to 0.40% for Class A shares and from 0.30% to 0.20% for Class Y shares [3]. Broader Trends in Fee Structures - A variety of money market funds have also reduced management, custody, and sales service fees recently [4]. - Several funds are offering promotional fee reductions, such as a significant drop in sales service fees for specific funds [4]. Growth of Low-Fee Products - The number of fund products with management fees at or below 0.15% has reached 1,050 [6]. - Approximately 30 funds have actively reduced their fees to the low-fee range of 0.15% or below this year [7]. Future Fee Reform Expectations - The ongoing fee reform includes three phases, with the third phase focusing on reducing sales fees, which is expected to save investors around 45 billion yuan annually starting in 2025 [7]. - Recommendations for future reforms include prioritizing the reduction of sales service fees and optimizing redemption fees to encourage long-term investment [7][8]. - There is a potential shift towards more flexible sales service fees based on the duration of investment holdings, which could enhance the balance between institutional and investor interests [8].