Core Viewpoint - The resignation of prominent fund manager Zhai Xiangdong from China Merchants Fund has been confirmed, with speculation about his potential move to a private equity fund, possibly Hillhouse Capital. This trend of high-profile fund manager departures has been increasing in the industry this year, with a total of 242 public fund managers leaving as of August 12, 2025, compared to 212 in the same period last year, marking a 14.15% increase [1][19][21]. Group 1: Resignation Details - Zhai Xiangdong has officially resigned as the manager of the China Merchants Advantage Enterprise Fund due to personal reasons and will not take on any other roles within the company [2][3]. - His departure follows a series of high-profile exits from various funds, including notable managers from firms like China Europe Fund and Industrial Bank of China Fund [1][19]. - The number of fund managers leaving this year has significantly increased, with 242 departures compared to previous years, indicating a trend in the industry [19][21]. Group 2: Performance and Management - Zhai Xiangdong's management of the China Merchants Advantage Enterprise Fund has been marked by impressive performance, achieving a 124.59% increase during his tenure, with an annualized return of 27.96% [5][6]. - The fund's performance has been notable, especially in 2023 and 2024, where it outperformed benchmarks significantly, although it faced challenges in the second quarter of 2025, resulting in a net value decline of 3.63% [6][11]. - His investment strategy focused on high-risk, high-reward opportunities, particularly in TMT (Technology, Media, and Telecommunications) sectors, which contributed to the fund's strong performance during market upswings [12][9]. Group 3: Industry Trends - The trend of fund managers transitioning from public to private equity is becoming more pronounced, driven by the allure of higher compensation and greater investment freedom in private equity [22]. - The public fund industry has seen a shift in dynamics, with an oversupply of fund managers following a period of rapid expansion, leading to increased departures as performance evaluations come into play [21][22]. - The active equity funds have recently begun to outperform the market after three years of underperformance, yet this has not prevented the exodus of top-performing fund managers [18][21].

Core Viewpoint - The resignation of Zhai Xiangdong from the position of fund manager for the China Merchants Advantage Enterprise Mixed Fund has raised concerns about the fund's future performance and reflects a broader talent issue within China Merchants Fund [1][5]. Group 1: Fund Manager Transition - Zhai Xiangdong, a well-known and high-performing fund manager, has left his position for personal reasons, and Lu Wenkai will take over the management of the fund [1][2]. - Under Zhai's management, the fund achieved a remarkable cumulative return of 124.59% over three years, with an annualized return of 27.96%, significantly outperforming its benchmark [2]. Group 2: Lu Wenkai's Background - Lu Wenkai has over 14 years of investment research experience and nearly 7 years in public fund management, having joined China Merchants Fund in March 2022 [3]. - His investment strategy focuses on mean reversion and aims to position investments at the bottom of cycles and valuations, with a diversified portfolio across various sectors [3]. Group 3: Investor Concerns - Investors are skeptical about Lu Wenkai's ability to manage the fund effectively, especially as the fund's scale has nearly doubled to 12.441 billion yuan, which may lead to challenges in maintaining investment strategy and precision [4]. - Compared to Zhai Xiangdong, Lu Wenkai's past performance has not been as impressive, raising doubts about his capability to deliver similar results [4]. Group 4: Broader Implications for China Merchants Fund - The departure of Zhai Xiangdong highlights a talent crisis at China Merchants Fund, which has seen multiple high-profile departures in 2024, including key figures in both fixed income and equity sectors [5].