Core Viewpoint - The article discusses the introduction of a floating management fee mechanism for public funds in China, aimed at aligning the interests of fund managers and investors, promoting a shift from scale-oriented to return-oriented strategies [1][10]. Group 1: Floating Management Fee Mechanism - The new floating fee structure is designed to bind the long-term interests of fund managers and investors, encouraging a win-win situation [1]. - The first batch of 26 floating fee rate funds is expected to enhance investor returns by promoting value and long-term investment strategies [1]. - The floating fee model is particularly beneficial for fund managers with stable investment styles and excess returns, as it incentivizes them to pursue long-term performance [10]. Group 2: Anxin Fund's Experience - Anxin Fund has been a pioneer in floating fee products, launching its first stock fund with a floating management fee in April 2014, which has since achieved a historical annualized return of 12.55%, significantly outperforming the CSI 300 Index's 5.38% [2][12]. - The experience gained from the Anxin Value Selected fund will aid in developing new floating fee models that better meet investor needs [2]. Group 3: Anxin Value Win Fund Design - The Anxin Value Win Mixed Fund features a tiered floating management fee structure based on the holding period and performance relative to a benchmark, with fees ranging from 0.60% to 1.50% depending on performance [3][4]. - This design allows for a fair assessment of management fees based on actual performance, aligning the interests of fund managers and investors [4]. Group 4: Fund Manager Profile - Yuan Wei, the proposed fund manager for Anxin Value Win, has a strong academic background in physics and a proven track record of generating excess returns, including a 120% excess return since 2017 [5][6]. - Yuan Wei's investment philosophy emphasizes a rigorous approach to value investing, focusing on companies with strong fundamentals and significant safety margins [9]. Group 5: Industry Impact - The reform of fund fee structures is expected to significantly impact the public fund industry, promoting a transition to a return-oriented fee model that aligns the interests of fund managers and investors [10]. - The floating fee mechanism encourages a long-term perspective in fund management, enhancing the overall investor experience and fostering a more stable investment environment [10].

Core Viewpoint - The approval of 26 new floating-rate funds by the China Securities Regulatory Commission (CSRC) reflects a significant shift in the public fund industry towards a model that aligns the interests of institutions and investors, promoting mutual growth and success [2][7]. Fund Details - All 26 products are mixed funds with a tiered management fee structure of 1.2% (base), 1.5% (upper tier), and 0.6% (lower tier), indicating a more than 100% difference between the lowest and highest fee rates [2][3]. - The performance indicators for adjusting fee tiers are based on annualized returns exceeding or falling short of the benchmark by 6 percentage points and 3 percentage points, respectively [3][4]. Fee Structure - For an investment of 1 million yuan, if the fund outperforms the benchmark by 6 percentage points after one year, the management fee increases from 12,000 yuan to 15,000 yuan; conversely, if it underperforms by 3 percentage points, the fee decreases to 6,000 yuan [6]. - The fee adjustment mechanism is asymmetric, with the increase in fees being half the magnitude of the decrease, demonstrating a focus on protecting investor interests [6]. Investment Focus - The 26 funds primarily invest in equities, with a typical stock allocation centered around 80%, targeting major indices such as the CSI 300, CSI A500, and others, while also participating in Hong Kong stocks and bonds [6]. - The initiative aligns with the "Action Plan for Promoting High-Quality Development of Public Funds," which aims for leading institutions to issue floating-rate funds at least 60% of the number of actively managed equity funds within a year [6][7]. Industry Response - The launch of floating-rate products is seen as a proactive response from the public fund industry to the regulatory action plan, indicating a beneficial exploration of fund fee structures [7]. - This new fee model is designed to encourage long-term holding by investors and enhance the accountability of fund management to performance benchmarks, fostering a healthier industry ecosystem [7].