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]