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 at China Merchants Fund has been confirmed, with speculation that he may join a private equity fund, possibly Hillhouse Capital [1][2][3] Fund Manager Resignation - Zhai Xiangdong's departure is part of a broader trend, with 242 public fund managers leaving their positions in 2025, a 14.15% increase compared to the previous year [1][16][18] - Other notable fund managers who have left this year include those from various well-known funds, indicating a significant turnover in the industry [1][16] Performance and Management - Zhai Xiangdong managed the China Merchants Advantage Enterprise Fund, which achieved a return of 124.59% during his tenure, significantly outperforming the benchmark indices [5][6] - The fund's performance in 2023 and 2024 was strong, with returns of 27.25% and 30.16% respectively, but faced challenges in the second quarter of 2025, resulting in a net value decline of 3.63% [6][10] Transition and Successor - Lu Wenkai has been appointed as the co-manager of the China Merchants Advantage Enterprise Fund, bringing nearly seven years of fund management experience [12][13] - Lu's investment style is more balanced compared to Zhai's focus on high-risk, high-reward strategies, indicating a potential shift in the fund's management approach [13] Industry Trends - The trend of fund managers moving from public to private equity is attributed to better compensation structures and greater investment freedom in private firms [19] - The public fund industry has seen a shift from expansion to a more competitive environment, leading to increased turnover among fund managers [18][19]