Core Viewpoint - The report highlights the ongoing trend of fund liquidation in the dividend strategy sector, with significant disparities in fund sizes and performance among various products [1][3][4]. Fund Liquidation and Size Disparities - On July 29, Guolian Fund announced the liquidation of its Guolian Smart Dividend Stock fund, which had a total of 6.84 million shares at the last operational day [1][3]. - Other funds, such as the Guolian An New Blue Chip Dividend fund, also faced liquidation, with only 2.99 million shares remaining at the end of the reporting period [3]. - As of the second quarter of 2025, there were 96 dividend strategy active equity products, with some nearing 10 billion yuan in size while others had less than 50 million yuan [3][4]. Performance and Market Trends - The overall size of dividend strategy active equity funds reached 49.973 billion yuan, reflecting a 5.64% increase from the previous quarter [4]. - However, 56 out of 92 products saw a decline in size, with some experiencing drops exceeding 50% [4]. - The report indicates that the performance of dividend funds is generally stable, but the decline in size may be attributed to investors taking profits [5]. Notable Performers - As of July 28, 49 products had annual returns exceeding 10%, with the FuGuo Hong Kong Stock Connect Dividend fund leading at 27.91% [5][7]. - The top three funds by size include the China Europe Dividend Enjoyment Flexible Allocation fund at 9.666 billion yuan, followed by the Huaxia Dividend Mixed fund at 4.762 billion yuan, and the ICBC Credit Suisse Dividend Enjoyment fund at 3.801 billion yuan [4]. Future Outlook - Analysts suggest that the dividend asset class remains a long-term effective fundamental factor, with expectations of significant performance differentiation among dividend assets moving forward [7]. - The market is anticipated to become more balanced, with a focus on true long-term assets such as banks, utilities, and telecommunications, as well as emerging dividend assets in sectors like internet and consumer goods [7].