Core Viewpoint - The launch of floating fee rate funds marks a significant transformation in the industry, with a focus on aligning fund manager compensation with long-term performance [1][18]. Summary by Sections Floating Fee Rate Funds - The first batch of floating fee rate funds was approved and launched, with performance benchmarks primarily against mainstream indices like the CSI 300 and the CSI A500 [1]. - The management fee structure is tiered based on annualized excess returns, with fees ranging from 0.60% to 1.50% depending on performance relative to benchmarks [1]. Fund Manager Profile - Zhu Hongyu from China Merchants Fund is highlighted as a suitable manager for these funds, possessing nearly 20 years of investment research experience and over 13 years in investment management [2]. - Zhu's extensive background in both public and private equity, along with a strong historical performance record, aligns with the requirements for managing floating fee rate funds [2][3]. Investment Philosophy and Strategy - Zhu Hongyu's investment approach is characterized by a three-tiered cognitive framework: understanding capability boundaries, recognizing industry life cycles, and insights into human behavior in market dynamics [6][8][13]. - The strategy emphasizes a balance between focused investments in well-understood companies and diversification across various sectors to mitigate risks [8]. Market Outlook - The current market is seen as transitioning into a phase of "profit stabilization and valuation recovery," with expectations of economic resilience supported by favorable policies [15]. - Key investment opportunities are identified in sectors such as defense, consumer goods, and pharmaceuticals, with a focus on undervalued assets and structural growth potential [16][17]. Conclusion - The introduction of floating fee rate funds represents not only a management model innovation but also a test of active equity fund managers' long-term capabilities [18]. - Zhu Hongyu's investment philosophy and experience provide a roadmap for navigating market uncertainties while aiming for sustainable long-term returns [18].