Core Viewpoint - The new regulations on performance benchmarks for public funds in China aim to enhance the accountability of fund managers by linking their compensation to the performance benchmarks, promoting a return to the fundamental purpose of asset management, which is to provide stable long-term returns for investors [1][9]. Group 1: Regulatory Changes - The China Securities Regulatory Commission (CSRC) released an action plan in May to promote high-quality development in the public fund industry, emphasizing the importance of performance benchmarks [1]. - A draft of new regulations regarding performance benchmarks was published on October 31, which is expected to improve the discipline of active investment and stabilize investment styles [1][9]. - The introduction of a performance benchmark element library aims to standardize the selection of benchmarks and prevent arbitrary changes, enhancing the comparability and normativity of benchmarks [9][8]. Group 2: Fund Performance Analysis - As of November 4, 2023, 3731 active equity funds were analyzed, with an average return that lagged behind their benchmarks by 7.26%, and only 34% of these funds outperformed their benchmarks over the past three years [2]. - Among the top-performing funds, only 20 funds achieved over 100% excess returns, indicating that achieving superior performance under the new standards is challenging [2]. - Some high-performing funds may have misleadingly high returns due to benchmark mismatches, highlighting the importance of appropriate benchmark selection [2][3]. Group 3: Size and Performance Correlation - Larger active equity funds do not necessarily correlate with superior excess returns; only 40% of funds over 10 billion yuan in size outperformed their benchmarks [5]. - Smaller funds, with an average size of 30.57 million yuan, showed better excess return capabilities, supporting the notion that smaller funds can adapt more flexibly to market changes [6][5]. Group 4: Fund Manager Impact - The total management scale of fund managers influences their active management capabilities, with a significant number of successful funds managed by managers overseeing over 10 billion yuan [7]. - The average tenure of fund managers does not significantly correlate with their ability to generate excess returns, indicating that experience alone may not guarantee performance [7]. Group 5: Industry Evolution - The new regulations are expected to lead to a systematic restructuring of the public fund industry, with a one-year transition period for existing products to adjust their benchmarks [9][10]. - The emphasis on long-term performance and the establishment of a benchmark-linked compensation system for fund managers will promote more transparent and standardized investment behaviors [9][10].

Group 1 - The core point of the news is the performance of the "Debang High-end Equipment" fund, which reported a net value decrease of 3.55% in Q2, significantly underperforming its benchmark by 4.12% [2] - Since its inception on March 14, 2025, the fund has accumulated a return of -20.57%, which is substantially lower than its performance benchmark [2] - The fund manager, Lu Yang, has a background in securities investment research and has been managing the fund since its establishment [4][6] Group 2 - Lu Yang manages three products at Debang Fund, with a total management scale of 1.215 billion yuan, where "Debang High-end Equipment" is his first independently managed product [6] - The performance of Lu Yang's other funds shows significant divergence, with "Debang Xinxing Value" achieving a cumulative return of 11.6% this year and 57.41% over the past year, while "Debang High-end Equipment" has underperformed [7][8] - Despite the poor performance of "Debang High-end Equipment," its share increased to 1.22 million units, a 3.07-fold growth from the previous quarter, indicating investor confidence in Lu Yang's management capabilities [9][11] Group 3 - The growth in shares of "Debang High-end Equipment" is primarily attributed to the C share class, which saw a remarkable increase from 0.16 million to 1.06 million units [11] - The fund focuses on high-end manufacturing sectors, particularly humanoid robots, and aims to capitalize on the accelerating industrialization of this technology [12][16] - The contrasting performance of "Debang High-end Equipment" and "Debang Xinxing Value" is due to their focus on different market segments, with the latter concentrating on the AI industry chain [16]

Core Viewpoint - The article discusses the performance of flexible allocation funds, particularly highlighting the success of the Yimin Service Leading fund in navigating market volatility through strategic position management, which resulted in significant excess returns during turbulent market conditions [1][4][6]. Group 1: Fund Performance and Strategy - On April 7, during a significant market downturn where over 2900 stocks hit their daily limit down, many active equity products fell over 10%, but the Yimin Service Leading fund maintained a net value change of 0, successfully avoiding losses [4]. - The fund's stock position was only 0.89% at the end of the previous year, but it increased its position to nearly 20% during the first quarter as market conditions improved, demonstrating effective timing and position management [4][6]. - The fund's net value remained stable with minimal fluctuations from June 2023 to the end of the year, indicating a cautious approach to market conditions, with a focus on bank deposits and bond funds [4][7]. Group 2: Flexibility and Market Sensitivity - The flexible allocation nature of the Yimin Service Leading fund allows for significant adjustments in position, making it more responsive to short-term market fluctuations, which is particularly advantageous for smaller funds [6][7]. - Many flexible allocation funds typically adopt a neutral position strategy, maintaining stock positions between 40% to 60%, but in high-pressure performance situations, they may adjust positions to enhance net value elasticity [7]. Group 3: Timing Debate - The ongoing debate about market timing remains relevant, with some fund managers emphasizing the difficulty of timing and opting for a focus on stock selection instead [2][8]. - The performance of different funds can vary significantly based on timing decisions, as illustrated by the contrasting results of two funds managed by the same team due to differing timing strategies [8][10].