Core Insights - The second batch of new floating-rate funds, including the China Europe Core Smart Mixed Fund, has seen strong market demand, with the first fund raising over 2 billion yuan and ending its fundraising early [2][3][4] - The China Securities Regulatory Commission (CSRC) has been promoting the development of public funds, including floating-rate fund trials, which has led to a total of 26 funds in the first batch raising over 25.8 billion yuan [2][6] - The second batch consists of 12 funds, including 2 equity funds and 10 mixed funds, focusing on various sectors such as pharmaceuticals and high-end manufacturing [6][7] Fund Characteristics - The China Europe Core Smart Mixed Fund features a "benchmark + floating" fee structure, which is attractive to investors, and includes a quarterly dividend distribution mechanism [4][6] - The fee structure for the second batch of floating-rate funds is more diversified, with three tiers based on performance, allowing for a more tailored approach to investor needs [6][7] - The second batch's focus on specific industry themes is expected to better align with international capital interests, potentially attracting more foreign investment [7] Market Trends - The early closure of fundraising for two funds indicates a growing acceptance and recognition of floating-rate funds in the market [4][8] - Investors are becoming increasingly cautious and are focusing on fund managers' capabilities and fee structures, which may lead to a more competitive environment for fund management [7][8] - The floating-rate fund model aligns the interests of fund managers and investors, potentially leading to better performance and lower costs for investors [7][8] Challenges Ahead - Despite the advantages of floating-rate funds, challenges remain, including market volatility and the need for investor education regarding fee structures [8][9] - The long-term success of floating-rate funds will depend on their ability to deliver consistent performance and gain market trust [9]

Core Viewpoint - The issuance of new floating-rate funds is gaining momentum in the market, with the E Fund Value Return Mixed Fund raising over 2 billion yuan and ending its subscription early [2][4][6]. Fund Issuance Details - The E Fund Value Return Mixed Fund announced the early closure of its fundraising on August 13, having started on August 4, with a target end date originally set for August 20, 2025 [4][6]. - This fund is part of the second batch of floating-rate funds, which includes the China Europe Core Select Mixed Fund and the Jianxin Medical Innovation Stock Fund, both of which also launched on the same day [4][6]. - The second batch of floating-rate funds has seen two out of three funds reach a fundraising scale of over 2 billion yuan, indicating a significant increase in market interest compared to the first batch [6]. Market Trends - The approval and issuance of new floating-rate products have accelerated since May 2023, following the China Securities Regulatory Commission's action plan to promote high-quality development of public funds [8]. - The first batch of 26 floating-rate funds launched on May 27, raising a total of over 25.8 billion yuan [9]. - As of August 12, most of the first batch of floating-rate funds have achieved positive returns, with some funds showing significant net asset value growth since their inception [10]. Future Outlook - Analysts suggest that the positive performance of the A-share market, particularly the Shanghai Composite Index breaking the 3600-point mark, is likely to attract more capital into the market as new floating-rate products are issued [11].

Core Viewpoint - The recent launch of new floating fee rate funds by major public fund companies indicates a growing trend in the market, with a focus on innovative investment strategies and enhanced investor experience [2][8]. Fund Launch and Features - Three new funds have been launched: E Fund Value Return Mixed, China Europe Core Select Mixed, and CCB Medical Innovation Stock, with subscription deadlines on August 20, August 15, and August 22 respectively [2]. - CCB Medical Innovation Stock has a fundraising cap of 3 billion yuan, while the other two funds do not have a limit [2]. - All three funds can invest in Hong Kong stocks, allowing for A+H share market allocation, with a maximum of 50% of stock assets in Hong Kong Stock Connect [2]. Innovative Dividend Mechanism - The China Europe Core Select Mixed fund has introduced a "quarterly dividend upon meeting standards" clause, allowing investors to receive cash dividends without redeeming their shares if the profit per share exceeds 0.01 yuan [3][4]. - This mechanism aims to enhance the holding experience for investors, although it is emphasized that dividends do not directly correlate with the fund's management quality [4]. Performance Benchmark Design - Each fund has a clearly defined performance benchmark reflecting its investment strategy: - E Fund Value Return Mixed targets a combination of indices including 55% from the CSI 800 Index and 20% from the CSI Hong Kong Stock Connect Composite Index [5]. - China Europe Core Select Mixed focuses primarily on the CSI 800 Index with an 80% weight [5]. - CCB Medical Innovation Stock emphasizes industry attributes with 70% from the CSI Medical and Health Index [5][6]. Fee Structure - All three funds adopt a "benchmark + floating" fee management model, with a base management fee of 1.2% [7]. - The fee structure includes incentives for performance, with higher fees applicable when returns exceed the benchmark and reduced fees when underperforming [7]. - This floating mechanism is designed to protect investors, only applying to those who hold their investments for over a year [7]. Market Expansion and Policy Influence - The rapid expansion of floating fee rate funds is driven by clear regulatory guidance, with the China Securities Regulatory Commission mandating that such products should constitute at least 60% of the issuance from leading institutions [8]. - The first batch of 26 floating fee rate funds was quickly approved and launched, raising a total of 25.9 billion yuan by July 21, significantly higher than the average for active equity funds [8]. - The introduction of CCB Medical Innovation Stock marks a strategic expansion into sectors like healthcare and high-end manufacturing, indicating a trend towards more innovative product offerings [9].

Core Viewpoint - The launch of the second batch of performance-based floating management fee rate funds by three public fund institutions reflects a trend towards aligning the interests of fund managers and investors through differentiated fee structures [1][3]. Fund Structure - The newly issued funds, including 中欧核心智选混合, 易方达价值回报混合, and 建信医疗创新股票, will have a management fee structure that includes a fixed management fee of 0.6% per year, a conditional management fee of 0.6% per year, and an excess management fee of 0.3% per year, depending on the holding period and annualized return [2][3]. - If investors hold their shares for less than one year, the management fee will be 1.2% per year. For holding periods of one year or more, the management fee will vary based on the annualized return, with a maximum of 1.5% per year for returns exceeding the benchmark by more than 6% [2][3]. Investor Experience - The new floating management fee model aims to encourage long-term investment by allowing investors to feel the impact of their returns on fees, promoting a "more earned, more paid; less earned, less paid" philosophy [3]. - 中欧核心智选混合 will implement a "quarterly distribution upon meeting standards" clause, allowing investors to receive cash dividends without redeeming their shares, enhancing the holding experience [5]. Performance Benchmark - The performance benchmarks for the funds have been clearly defined, with 易方达价值回报混合 linked to a composite of various indices, 中欧核心智选混合 primarily tied to the 中证800 index, and 建信医疗创新股票 associated with the 中证医药卫生指数 [4]. Industry Context - The launch of these funds aligns with the China Securities Regulatory Commission's initiative to promote high-quality development in the public fund industry, emphasizing the establishment of floating management fee mechanisms linked to fund performance [5].

Core Insights - A total of 19 public funds have launched their initial fundraising on August 4, including three products from the second batch of new floating-rate funds: E Fund Value Return Mixed, China Europe Core Select Mixed, and Jianxin Medical Innovation Stock [1] Fund Details - China Europe Core Select Mixed is set to end its fundraising on August 15, E Fund Value Return Mixed on August 20, and Jianxin Medical Innovation Stock on August 22 [1] - Jianxin Medical Innovation has a fundraising cap of 3 billion yuan [1] Fund Management - E Fund Value Return is managed by Tang Bolun, Jianxin Medical Innovation by Ma Muqing, and China Europe Core Select by Zhang Cong and Song Ting [1] Fund Approval and Themes - The second batch of new floating-rate funds was approved on July 24, covering various industry themes such as pharmaceuticals, manufacturing, and high-end equipment, along with initiator funds [1] - Among the new products, there are 2 stock-type funds and 10 equity-mixed funds, including: Invesco Great Wall High-end Equipment Stock, Jianxin Medical Innovation Stock, Bank of China Quality Emerging Mixed, Ping An Research-Driven Mixed, Southern Ruijing Mixed, Oriental Red Medical Innovation Mixed, E Fund Value Return Mixed, Huatai-PB Manufacturing Theme Mixed, Guotai Quality Core Mixed, China Europe Core Select Mixed, and Morgan Huikai Growth Mixed [1]