Core Viewpoint - The resignation of Zhai Xiangdong, a prominent fund manager at China Merchants Fund, marks a significant change for the company, particularly for the high-performing China Merchants Advantage Enterprise Mixed Securities Investment Fund, which he managed for nearly three years, achieving a return of 124.59% during his tenure [3][6]. Group 1: Fund Manager Transition - Zhai Xiangdong announced his departure from China Merchants Fund on August 10, expressing gratitude to investors and colleagues for their support during his five-year tenure [1]. - The announcement of Zhai's resignation was made on August 9, with the fund's assets under management decreasing from 100.17 billion to 81.32 billion, possibly due to rumors of his departure [3][6]. - Lu Wenkai has been appointed as the new fund manager, bringing 14 years of investment experience and a strong track record of outperforming benchmarks [8][11]. Group 2: Fund Performance and Strategy - During Zhai's management, the fund focused on high-growth sectors such as TMT (Technology, Media, and Telecommunications), achieving a significant annualized return of 27.96% [6]. - Lu Wenkai's investment strategy emphasizes a mean-reversion approach, targeting growth stocks at the bottom of their cycles, with a focus on sectors like TMT, military, and consumer goods [10]. - The new manager plans to maintain a growth-oriented investment style while gradually increasing exposure to consumer sectors, particularly those with strong barriers to entry and low price-to-earnings ratios compared to international peers [10][11]. Group 3: Company Resilience and Future Outlook - China Merchants Fund has a robust research team with over 70 investment professionals, ensuring continuity and stability despite the managerial change [11]. - The firm has implemented a unique "1+7" investment research model, which has contributed to its leading performance in the medium-sized fund category over the past year [11]. - The transition to Lu Wenkai is seen as a strategic move to blend growth potential with enhanced risk management, potentially opening new avenues for value creation in the fund [11].

Core Viewpoint - The announcement from China Merchants Fund regarding the appointment of Lu Wenkai as a co-manager for the China Merchants Advantage Enterprise Mixed Securities Investment Fund indicates a strategic adjustment aimed at optimizing the research and investment team for long-term planning and resource allocation [2][10]. Fund Manager Change - Lu Wenkai has been appointed as a co-manager alongside the original manager Zhai Xiangdong for the China Merchants Advantage Enterprise Mixed Securities Investment Fund [3]. - The change is described as a normal adjustment based on the company's needs for effective product management and research team optimization [2][10]. Performance and Background of Zhai Xiangdong - Under Zhai Xiangdong's management, the fund's scale increased from less than 40 million to over 10 billion, reaching 100.17 billion by the end of 2024, a nearly 30-fold increase from 3.4 billion at the end of 2022 [4]. - The fund achieved a return of 115.81% during Zhai's tenure, with an annualized return of 26.84%, ranking fifth among 2,901 similar funds [4]. Investment Strategy - Zhai Xiangdong employed a high-yield configuration strategy, focusing on growth industries driven by expectations and performance, with a significant emphasis on the TMT sector [5]. - The new manager, Lu Wenkai, is expected to adopt a mean-reversion strategy, focusing on cyclical and valuation bottoms, while maintaining a diversified portfolio across various sectors [8][10]. Industry Trends - The personnel change reflects a broader transformation within the public fund industry, where the trend of "de-starring" and transitioning to team-based management is becoming more prevalent [9]. - The emphasis on maintaining investment strategy continuity aligns with regulatory guidance aimed at enhancing the stability and diversity of research teams within fund companies [9][10].