Core Viewpoint - The public fund industry in China has experienced significant growth in the third quarter of 2025, driven by a strong performance in the A-share market, with total assets under management reaching 36.45 trillion yuan, an increase of approximately 2.41 trillion yuan from the previous quarter [1] Group 1: Fund Management Scale - As of the end of Q3 2025, the total scale of public fund management institutions reached 36.45 trillion yuan, up from 34.05 trillion yuan at the end of Q2, marking a growth of about 7.09% [1] - The top ten companies in the public fund industry all surpassed the 1 trillion yuan mark, with E Fund and Huaxia Fund leading the first tier, while GF Fund ranked third with 1.5425 trillion yuan [1] - GF Fund's non-monetary fund scale reached 991.6 billion yuan, an increase of 97 billion yuan from the end of Q2 2025, reflecting a quarter-on-quarter growth of 10.84% [1] Group 2: Equity Fund Performance - In the equity fund category, E Fund, Huaxia Fund, and Huatai-PB Fund ranked as the top three, with GF Fund closely following with a scale of 568.16 billion yuan, which saw an increase of over 100 billion yuan in the quarter, representing a growth rate of 27.65% [1] - GF Fund's active equity fund reached 233.3 billion yuan by the end of Q3 2025, growing by 34.3 billion yuan from the previous quarter, with a quarter-on-quarter increase of 17.25% [2] Group 3: Underperforming Funds - Despite the overall strong performance of active equity funds, some products managed by GF Fund, particularly those under manager Wang Mingxu, have shown disappointing net value performance, with several funds experiencing significant declines [3][4] - Among the underperforming funds, the GF Value Advantage Mixed Fund had a net value growth rate of -15.37%, ranking last in the market, while the GF Domestic Demand Growth Fund also performed poorly with a decline of 14.77% [4][5] - A total of six funds managed by Wang Mingxu recorded net value declines exceeding 10%, indicating a significant underperformance compared to their benchmarks [5] Group 4: Investment Strategy and Challenges - The investment strategy at GF Fund has been criticized for its lack of flexibility, as the firm has divided its equity investment department into three segments based on manager styles, which may hinder timely investment opportunities [6][7] - The misalignment of interests between public fund companies and investors is evident, as management fees are tied to fund size rather than performance, leading to a focus on growing assets rather than enhancing investor returns [8][10] - Despite cumulative losses exceeding 100 billion yuan from 2022 to 2024, GF Fund continued to collect nearly 20 billion yuan in management fees, highlighting the disconnect between fund performance and management compensation [10]

Core Insights - In the first three quarters of this year, 15 mixed funds experienced a decline of over 10%, with 11 of these funds managed by GF Fund [1] - All 11 underperforming funds are managed by Wang Mingxu, who has nearly 7 years of experience managing funds at GF Fund [1] Fund Performance Summary - The worst-performing fund is GF Value Advantage Mixed, with a decline of 15.37% [2] - Other notable declines include GF Domestic Demand Growth Mixed C at -15.01% and GF Domestic Demand Growth Mixed A at -14.77% [2] - The performance of additional funds managed by Wang Mingxu includes GF Value Preferred Mixed C at -13.59% and GF Value Preferred Mixed A at -13.34% [2] - The overall trend indicates a significant underperformance of GF Fund's mixed funds compared to the market [1][2]

Core Viewpoint - In the first three quarters of this year, 15 mixed funds experienced a decline of over 10%, with 11 of these funds managed by GF Fund, indicating significant underperformance in this category [1] Group 1: Fund Performance - The top underperforming fund is GF Value Advantage Mixed, which declined by 15.37% [2] - Other notable declines include GF Domestic Demand Growth Mixed C at -15.01% and GF Domestic Demand Growth Mixed A at -14.77% [1][2] - The performance of GF funds is concerning, as they occupy 11 out of the 15 positions on the decline list [1] Group 2: Fund Manager - All 11 underperforming funds are managed by Wang Mingxu, who has nearly 7 years of experience managing funds at GF Fund [1] - Wang Mingxu's previous roles include positions at Northeast Securities, Life Insurance Asset Management, and other financial institutions, showcasing a robust background in investment management [1]

Core Insights - In September, five mixed funds managed by GF Fund ranked among the top ten funds with the largest declines, each experiencing a drop of over 10% [1][2] Group 1: Fund Performance - The five funds with significant declines include GF Value Advantage Mixed (-11.53%), GF Value Preferred Mixed C (-11.00%), GF Value Preferred Mixed A (-10.96%), GF Domestic Demand Growth Mixed C (-10.11%), and GF Domestic Demand Growth Mixed A (-10.10%) [1][4] - All five funds are managed by Wang Mingxu, who has nearly seven years of experience managing funds and has held various positions in the finance sector [1][2] Group 2: Fund Holdings - The top ten holdings for GF Value Advantage Mixed include Midea Group, Jiangsu Bank, Yangtze Power, Longxin Group, TCL Electronics, Chengdu Bank, Sifang Jingchuang, Hangzhou Bank, Lakala, and Kweichow Moutai [1][2] - Similar holdings are observed in other funds, with a consistent focus on large-cap blue-chip stocks and undervalued sectors, reflecting Wang Mingxu's investment style [2]

Core Insights - In September, 81.81% of the 8627 mixed funds with comparable performance saw an increase in net value, while 1549 funds experienced a decline [1] - Fourteen mixed funds achieved a monthly increase of over 25%, with the top performers being 嘉实新优选混合, 东方新能源汽车主题混合, and others, showing returns between 27.03% and 30.17% [1][2] - 嘉实新优选混合 fund, established in April 2016, reported a year-to-date return of 54.33% and a cumulative net value of 1.4440 yuan as of September 30, 2025 [1][2] Fund Performance - 嘉实新优选混合 increased its allocation to leading lithium battery equipment companies, with top holdings including 宁德时代 and 星宇股份 as of June 30 [2] - 泉果旭源三年持有期混合A, the largest fund by size, had a monthly increase of 26.02% and a year-to-date return of 48.80%, with a cumulative net value of 1.1172 yuan [3] - The top holdings of 泉果旭源三年持有期混合A include 科达利 and 腾讯控股, focusing on sectors like high-end manufacturing and internet companies [3] Declining Funds - Eight mixed funds experienced a decline of over 10% in September, with five belonging to 广发基金, showing declines ranging from 10.10% to 11.53% [4]

Financial Performance - In the first half of 2025, the company reported operating income of 3.898 billion yuan and net profit of 1.18 billion yuan, both achieving double-digit growth, placing it among the industry leaders [1][2] - The management fee income reached 2.909 billion yuan, ranking third in the industry, while the custody fee income was 643 million yuan, also ranking third [2][3] - As of mid-2025, the company's public fund management scale exceeded 1.5 trillion yuan, with non-monetary public fund scale reaching 894.5 billion yuan, showing significant growth in various fund types despite volatility in equity investments [3][4] Active Equity Fund Performance - The company faced challenges in its active equity investments, recording a stock price difference income of -5.81 billion yuan, ranking last among the top 25 fund companies [5] - Despite generating 10.29 billion yuan in bond investment income, the overall performance remained unbalanced, with active equity funds becoming a drag on the company's performance [5][6] - As of September 3, 2025, the company had 10 active equity funds with negative returns, the highest number among all fund companies, with significant declines in several key products [5][6] Management and Incentives - The company's investment management department general manager, Wang Mingxu, managed several underperforming funds but received nearly 8 million yuan in dividends from the employee stock ownership platform [7][9] - The establishment of employee stock ownership platforms allowed core management to secure stable cash returns through dividends, even amid poor investment performance [7][11] - This discrepancy between financial performance and investment results raises questions about the effectiveness of linking performance to incentives within the company [11]

Core Viewpoint - Wang Mingxu, a fund manager at GF Fund, is facing significant performance challenges in 2025, with his flagship fund, GF Domestic Demand Growth Mixed Fund, experiencing a net value decline of 8.72% year-to-date, underperforming its benchmark by approximately 12 percentage points [1][4]. Performance Summary - The GF Domestic Demand Growth Mixed Fund has consistently ranked poorly among its peers, currently positioned 2301 out of 2321 similar products [1][4]. - In the first half of 2025, the fund's net value fell by 7.87%, lagging behind its benchmark by 8.57 percentage points [3][4]. - Over the past year, the fund has underperformed its benchmark by 13.97 percentage points, and over the past three years, the underperformance is 7.5 percentage points [3][4]. Fund Management and Strategy - Wang Mingxu has been managing the GF Domestic Demand Growth Mixed Fund since October 2018, and despite recent struggles, the fund has achieved a cumulative return of over 130% since inception, with an annualized return exceeding 13% [5][6]. - The fund primarily invests in high-quality listed companies benefiting from domestic demand growth, aiming for long-term stable asset appreciation [3][6]. - Recent adjustments in the fund's portfolio included reducing exposure to real estate and brokerage sectors while increasing investments in city commercial banks and high-end liquor companies [6]. Fund Composition - As of the end of Q2 2025, equity investments accounted for 79.71% of the fund's total assets, while bond investments made up 13.37% [6]. - Major holdings in the fund include companies like Midea Group, Jiangsu Bank, and Kweichow Moutai, with over half of the top ten holdings being newly added in Q2 [6]. Broader Context - Wang Mingxu manages a total of eight products, with six of them experiencing net value declines exceeding 6% year-to-date, all underperforming their benchmarks by over 10 percentage points [7]. - The largest fund managed by Wang, GF Balanced Preferred Mixed A, has seen a net value drop of 6.01% this year, also underperforming its benchmark by over 12 percentage points [8].