Report Industry Investment Rating - The report does not explicitly mention the industry investment rating [1][2][6][8] Core Viewpoints of the Report - In February 2026, the configuration suggestion is to dig for opportunities in the pro - cyclical market, emphasizing both the chemical and agricultural sectors. The agricultural sector is expected to have price - rising prospects due to emerging economies' industrialization and geopolitical situations. Currently, funds are under - allocating to the agricultural sector, and the agricultural sector, with its mid - cap blue - chip characteristics, is expected to resonate with the CSI 500 Index [2][8] - In 2025, the agricultural sector had a lackluster performance with significant structural differentiation. Pig farming was under pressure, while beef cattle farming showed good performance. Fund managers actively adjusted the sector's structure and made left - hand side layouts in the breeding sector [6][15] - For 2026, fund managers are optimistic about the agricultural sector, believing there are structural opportunities and the possibility of a reversal, especially in the breeding sector such as pig and beef cattle farming [6][20] Summary by Relevant Catalogs 2026 February Configuration Suggestion - Configuration strategy: Focus on the chemical and agricultural sectors in the pro - cyclical market. The agricultural sector is favored because of price - rising opportunities from emerging economies' industrialization and geopolitical situations. Currently, active equity mutual funds allocate less than 0.5% to the agricultural sector, and the scale proportion of agricultural - related ETFs is also low. The agricultural and forestry, animal husbandry, and fishery sectors, with mid - cap blue - chip features, may resonate with the CSI 500 Index [2][8] - Recommended funds: Suggest paying attention to funds such as YinHua Agriculture Industry A, Agriculture Select LOF, etc. YinHua Agriculture Industry A holds the most agricultural - sector stocks and mainly allocates to the breeding sector, with a high proportion of holdings in pig and poultry breeding companies [2][9][10] 2025Q4 Quarterly Report on Agricultural Fund Core Viewpoints 2025 Agricultural Sector Market - Overall performance: The agricultural sector had a lackluster performance with structural differentiation. Although the agricultural index rose slightly in Q4, sub - sectors like breeding and feed declined, while the agro - chemical sector performed well due to supply - side adjustments [6][15] - Key sub - sectors: Pig farming was under pressure as pig prices hovered at the bottom, and the industry entered a new cycle of capacity reduction. Price recovery is expected in the second half of 2026. Beef cattle farming was outstanding, with beef prices rebounding significantly from the bottom, large - scale and long - term capacity reduction, and good stock price performance. Consumption - related sectors were sluggish [6][15][17] 2025 Agricultural Sector Configuration - Configuration ideas: Fund managers actively adjusted the sector's structure and made left - hand side layouts in the breeding sector. They moderately increased holdings in leading enterprises during the trough of the breeding industry and concentrated their allocations on excellent companies in various sub - fields [17] - Fund types: Agricultural theme funds continued to focus on the breeding industry chain and adjusted their positions according to the cycle. Some general consumption funds slightly increased their allocations to the agricultural sector with low current valuations in Q4 [18][19] 2026 Agricultural Sector Outlook - Overall outlook: Fund managers are optimistic about the agricultural sector in 2026, believing there are structural opportunities and the possibility of a reversal. They emphasize the price - rising foundation at a low base and the reversal potential after capacity reduction. They are particularly optimistic about the upward cycle of the beef cattle/animal husbandry industry [20] - Pig farming opportunity: The capacity reduction that started in the second half of 2025, combined with policy constraints and deep losses, will enable the pig farming sector to reach a cycle configuration point or price reversal in 2026, especially in the second half of the year [20][21]

Core Viewpoint - The China Securities Regulatory Commission (CSRC) has issued a new action plan aimed at promoting the high-quality development of public funds, linking fund manager compensation directly to long-term performance, which addresses the industry's longstanding issue of prioritizing scale over performance [1] Group 1: Regulatory Changes - The new regulations stipulate that fund managers will face salary reductions if their performance lags the benchmark by more than 10%, while those who outperform will receive salary increases [1] - This policy aims to rectify the industry's focus on asset size rather than investment performance, highlighting the significant performance disparities among fund managers [1] Group 2: Performance Analysis - Among the 111 fund managers overseeing over 10 billion yuan in equity funds, 45 have underperformed the benchmark, with 24 of them lagging by more than 10% [1] - Conversely, 66 fund managers have outperformed the benchmark, with 38 achieving excess returns exceeding 10% [1] Group 3: Individual Fund Manager Performance - Notable underperformers include Zheng Chengran from GF Fund, whose three-year return is -45.12%, significantly underperforming the benchmark by 45.14 percentage points [3] - Other underperforming managers include Feng Bo (-33.56%), Ge Lan (-32.93%), and Lu Bin (-29.33%), all of whom manage substantial fund sizes [2][3] Group 4: Fund Performance Insights - The performance of specific funds shows that the new energy theme funds have performed well in a volatile market, with GF New Energy Select A being the top performer year-to-date and over the past year [5] - In contrast, GF High-End Manufacturing A has been the worst performer, with a year-to-date return of -11.28% and a one-year return of -17.87% [5] Group 5: Long-term Performance Trends - GF Xinxiang A is the only fund with a positive five-year return, achieving an annualized return of approximately 6.96%, indicating some resilience against market volatility [6] - Many funds, however, have negative three-year returns, such as GF Chengxiang A, which has a return of -18.17%, reflecting challenges in adapting to market conditions [6] Group 6: Market Sentiment and Future Outlook - Market analysts suggest that the new regulations will push the industry back to its asset management roots, making long-term performance a critical factor for fund managers' careers [8] - The future performance of fund managers like Zheng Chengran will be closely monitored to see if they can navigate market cycles and generate excess returns [8]

Core Viewpoint - The FOF (Fund of Funds) portfolios reveal a preference for low-cost, clearly defined index funds and strong-performing active equity funds, indicating a trend in investment strategies among FOFs [1] Group 1: FOF Holdings Overview - As of the end of 2024, there are 1,257 active equity funds held by FOFs, with 121 funds having holdings exceeding 50 million shares [1] - In terms of market value, 100 funds have a holding value exceeding 100 million yuan [1] - Large fund companies with comprehensive product offerings, such as GF Fund, have multiple funds in FOF portfolios, indicating recognition of their active stock investment capabilities [1] Group 2: GF Fund Performance - GF Fund has five funds that meet both the criteria of FOF holdings exceeding 50 million shares and a market value exceeding 100 million yuan [2] - The top fund, GF Industry Leading A, has the highest FOF holdings and market value, with 180 million shares held by 15 FOFs, totaling a market value of 310 million yuan [2] - The fund manager, Cheng Kun, has achieved a return of 51.49% since taking over the fund on May 31, 2019, with a benchmark outperformance of 38.59% [2] Group 3: Investment Style of Cheng Kun - Cheng Kun is characterized as a classic value investor, focusing on undervalued assets with a long-term perspective [3] - His investment strategy includes a high stock position, typically maintaining over 90%, with a balanced industry allocation across various sectors [3] - As of the end of 2024, nine of his top holdings have been held for at least four quarters, with four held for over two and a half years, reflecting a preference for long-term investments [3]