Core Viewpoint - The article discusses the importance of multi-asset products in the context of China's regulatory push for high-quality development of public funds, emphasizing the need for long-term absolute return capabilities in fund products [2][9]. Group 1: Overview of Multi-Asset Products - The U.S. multi-asset index market has evolved significantly since the Pension Protection Act of 2006, which established target date funds as default investment options for retirement plans [4][12]. - Various types of multi-asset indices have emerged, including constant proportion, risk parity, target risk, target date, and macro rotation indices, each with distinct methodologies and asset allocation strategies [14][18][20]. Group 2: Current State of Multi-Asset Products in China - Domestic actively managed multi-asset products are characterized by an increase in quantity but lack significant scale, indicating a disconnect between fund managers' intentions and investors' acceptance [5][6]. - Performance issues have contributed to low investor acceptance, with many active multi-asset products underperforming their benchmarks over the past two and a half years [5][6]. Group 3: Future Development Paths - The article suggests that "indexation" could be a viable strategy for the development of multi-asset products in China, which could reduce the complexity of benchmark selection and management pressure [5][6]. - Future development may involve enhancing the diversity of underlying indices and promoting the adoption of multi-asset index products, primarily focusing on constant proportion and target risk index products [6][20]. Group 4: Performance Analysis of U.S. Multi-Asset Indices - The article highlights that the best-performing U.S. multi-asset indices in terms of risk-adjusted returns include the S&P MARC 5% Index, S&P MAESTRO 5 Index, and S&P PRISM ETF Tracker, with the latter achieving an annualized return of 9.7% since 2010 [20][22]. - The performance of these indices varies significantly based on market conditions, with risk parity indices often outperforming in volatile years and macro rotation indices excelling during periods of high inflation [20][21].

Core Insights - The performance of bank wealth management companies has shown significant improvement in the first half of the year, with growth in managed scale, operating income, and net profit [1][2][3] Group 1: Management Scale Growth - As of June 30, 2023, several bank wealth management companies reported growth in managed assets, with 招银理财 managing 2.88 trillion yuan, a 3.60% increase from the end of last year [2] - 中邮理财's net value product scale reached 851.82 billion yuan, up 10.96% year-on-year [2] - 南银理财's total managed wealth products approached 380 billion yuan, reflecting a growth of over 16% [2] - 平安银行 reported a non-principal guaranteed wealth product balance of 947.28 billion yuan, an 8.60% increase [2] Group 2: Operating Performance - 招银理财 achieved operating income of 3.186 billion yuan and net profit of 2.066 billion yuan in the first half of the year, compared to 2.351 billion yuan and 1.557 billion yuan in the same period last year [2] - 杭银理财 reported operating income of 1.044 billion yuan and net profit of 741 million yuan, up from 355 million yuan and 237 million yuan respectively last year [3] Group 3: Product System Enrichment - Wealth management companies have focused on optimizing and enriching their product systems, with 招银理财 developing 70 product lines and launching various themed products [4] - 杭银理财 upgraded its product system, introducing new themes such as "幸福99·六合" and various investment products [4] - 平安理财 made significant advancements in its investment research capabilities, developing a multi-asset allocation system [4] Group 4: Investment Research Capability Enhancement - Wealth management companies are enhancing their investment research and asset management systems, with 杭银理财 establishing a comprehensive asset allocation research framework [5] - 招银理财 reported that as of June 30, 2023, new products compliant with asset management regulations totaled 2.74 trillion yuan, representing 95.14% of its total wealth management products [5] - The transition period for cash management products is expected to conclude by the end of the year, with companies actively working on product transformations [6]

Core Viewpoint - The public fund industry is undergoing significant reforms, leading to a transformation in fund sales institutions as they adapt to shrinking income from trailing commissions and upcoming sales fee reductions [1][2][3]. Group 1: Impact of Fee Reductions - The first major impact on fund sales institutions is the reduction of trailing commissions, with management fees and trailing commissions both decreasing since the initiation of the public fund fee reform in July 2023. The management fee income is projected to be 124.73 billion yuan in 2024, down 8.1% from 2023, while trailing commissions are expected to be 35.48 billion yuan, a decrease of 8.7% [2]. - Many fund sales institutions, such as China Merchants Bank and Tonghuashun, reported a significant decline in their distribution income, with reductions around 20% [2]. - The second wave of impact is anticipated with the upcoming sales fee reductions, which are expected to be implemented by May 2025, further constraining the income potential for sales institutions [3]. Group 2: Transition Strategies - Fund sales institutions are shifting from a seller-driven model to a buyer service model in response to the fee reductions. This includes adjusting product offerings from fixed-income products to multi-asset and equity products to meet diverse investor needs [4][5]. - Companies like Yingmi Fund are focusing on deepening their buyer advisory model, moving towards a fee structure based on advisory services rather than sales commissions [5][6]. - The industry is also seeing a push towards enhancing investor experience and focusing on long-term performance, with institutions like Tencent Licai Tong implementing comprehensive advisory services to improve investor decision-making and outcomes [8][9]. Group 3: Evaluation and Performance Metrics - The regulatory framework is evolving to include a classification evaluation mechanism for fund sales institutions, emphasizing metrics such as investor returns and holding periods, which will guide internal assessment and incentive structures [6][7]. - Companies are increasingly focusing on aligning their performance metrics with investor outcomes, with organizations like Yingmi Fund integrating user satisfaction and trust into their performance evaluations [7][10]. - The emphasis on improving investor holding experiences is becoming a common goal across the industry, with strategies aimed at enhancing investor education and risk awareness to foster better long-term investment behaviors [10].