Core Viewpoint - Manulife Fund is facing dual challenges of core talent loss and sluggish growth in scale, exacerbated by recent regulatory penalties for foreign exchange management violations [1][2][11]. Regulatory Penalties - The State Administration of Foreign Exchange (SAFE) imposed a fine of 70,000 yuan on Manulife Fund for violating foreign exchange registration regulations [1][2]. - The violations pertained to Article 10 and Article 17 of the Regulations on Foreign Investors' Direct Investment in China, specifically in the foreign exchange registration management process [2][3]. - Although the fine is relatively low, it highlights the challenges foreign institutions face in adapting to local regulatory requirements during a critical transformation period [2][11]. Company Background and Current Status - Established in 2002, Manulife Fund is now fully foreign-owned, having transitioned from a joint venture to a wholly-owned subsidiary of Manulife Financial [2][6]. - As of the second quarter of 2025, the company's asset scale reached 95.56 billion yuan, ranking 64th among 162 public fund companies in China [6][8]. - Despite a growth of 15.846 billion yuan compared to the end of 2024, the company has struggled with long-term growth compared to peers like招商基金 and 万家基金, which have surpassed several hundred billion yuan in scale [6][8]. Talent and Management Challenges - The company is experiencing significant talent attrition, particularly in its core investment research team, with notable departures including the former head of equity investment, Wang Peng, who managed nearly half of the company's equity product scale [6][9]. - Frequent changes in the executive team since the transition to full foreign ownership have led to instability in governance and strategic direction [9][11]. Product Structure and Market Position - As of the second quarter of 2025, equity products accounted for only 19% of the company's total product offerings, significantly below the industry trend favoring equity fund development [9][11]. - The management fee for equity products remains at 1.5%, which is higher than the industry average, raising concerns among investors regarding the value proposition [9][11]. International Business Developments - Despite the challenges, Manulife Fund has made strides in international business, launching ten fund products in Macau's non-mandatory central provident fund system and maintaining a leading market share of 27.6% in Hong Kong's MPF market as of April 2025 [10][11].

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].