Core Insights - The Chinese public fund industry is becoming increasingly competitive, with Manulife Fund leveraging its unique advantage of foreign ownership and localized research capabilities to achieve significant growth in both scale and performance [1][2] - As of June 30, 2025, Manulife Fund's total public fund scale reached approximately 95.4 billion yuan, a 20% increase from the beginning of the year, contrasting with an average growth rate of about 5% among the top 20 companies in the fund industry [1] Group 1: Growth Drivers - Manulife Fund's growth is primarily driven by two pillars: proactive product layout and industry innovation practices, including the approval of the first open-ended floating management fee rate active equity fund in the industry [1][2] - The company has diversified its product lines, enhancing competitiveness and increasing the willingness of institutional and individual investors to allocate funds [1] Group 2: Investment Performance - Over 80% of Manulife Fund's equity products recorded positive returns in the first half of 2025, with three products rated five stars and ten rated four stars by Galaxy Securities [2] - As of June 30, 2025, Manulife Fund ranked 13th among 124 comparable companies in terms of active stock investment capability over the past two years [2] Group 3: Differentiated Competitive Advantage - Manulife Financial Group's extensive experience in global pension management supports the company's operations, managing over $300 billion in pension assets globally and ranking first in the Hong Kong MPF market [3] - The company has established a differentiated advantage in pension investment, with all four of its pension target funds achieving positive returns [3] Group 4: Asset Allocation and Wealth Management - In 2025, Manulife Fund successfully secured overseas asset allocation mandates, enhancing its comprehensive wealth management capabilities [4] - The company has focused on analyzing asset attributes and allocation values from a global perspective, aiming to seize both medium- and short-term tactical allocation opportunities [4] Group 5: Research and Investment Team - Manulife Fund has built a robust investment research team with an average experience of over 12 years among its 24 fund managers, ranking third in the industry for active equity investment capability in 2024 [5] - The company emphasizes long-term sustainable investment capability over short-term scale growth, optimizing its investment decision-making process through a structured research framework [5] Group 6: Future Outlook - Manulife Fund plans to continue leveraging its foreign ownership advantage to deepen its focus on equity investment, fixed income, pension investment, and ESG fields, providing more diversified asset allocation tools for investors [6]

Core Viewpoint - Foreign-controlled public funds have been a significant force in the development of China's asset management industry, with Manulife Fund playing a crucial role in integrating global asset allocation frameworks with local industry research [1][4]. Group 1: Company Overview - Manulife Fund is the first public fund company in China to transition from a joint venture to 100% foreign-controlled status, allowing for deeper integration of international financial experience with the unique ecosystem of China's capital market [7]. - The company has consistently been at the forefront of industry innovation, launching various products such as the first industry umbrella fund in 2003, becoming one of the first FOF and pension FOF managers in 2017, and issuing the first green inclusive theme fund in 2024 [2][8]. Group 2: Investment Strategy and Performance - The newly launched floating fee rate fund, Manulife Smart Navigator Mixed Fund, is designed with a focus on long-term excess returns and aligns management fees with fund performance, reflecting a customer-centric service philosophy [5][26]. - Fund manager Meng Jie has been recognized for his ability to control drawdowns and achieve long-term excess returns, with his managed fund showing a maximum drawdown of -29.59%, significantly lower than the market average [10][16]. - Meng Jie employs a contrarian investment strategy, focusing on stock selection based on valuation and quality rather than market trends, which has led to consistent performance even in volatile market conditions [19][20]. Group 3: Market Context and Timing - The public fund industry in China is transitioning from a scale-driven model to a value-driven approach, with regulatory bodies emphasizing the optimization of fee structures to enhance investor experience [4]. - Current market conditions are favorable for investment, with policies being implemented to boost market confidence and a stable trading volume exceeding 1 trillion, indicating a good entry point for long-term investments [26].

Group 1 - The core viewpoint of the article highlights the transition of China's public fund industry from a "scale-oriented" development model to a performance-oriented one, driven by the introduction of floating fee products [1][2] - The China Securities Regulatory Commission (CSRC) has officially moved floating fee funds from pilot status to normalization, with several leading fund companies, including Manulife Fund, obtaining approval for related products [2] - Floating fee funds link management fees to fund performance or holding period, breaking traditional fee structures and aligning the interests of fund managers with investors, thereby enhancing the investment experience [1][2] Group 2 - Manulife Fund, as the first foreign-controlled public fund company in China, expresses confidence in the steady growth of the Chinese economy and the healthy development of the capital market [3] - As of Q1 2025, Manulife Fund's total managed assets reached 115.8 billion, with non-monetary management assets at 68.4 billion, showing growth significantly above the industry average [3] - The average return of Manulife Fund's active equity funds over the past year was 23.09%, ranking 6th in the industry, while the five-year average return was 64.58%, ranking 12th, indicating strong mid-to-long-term performance [3]

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].