Core Insights - The recent appointment of Zhu Hongyu and Wang Jing as senior executives at China Merchants Fund is a notable move in an industry where many firms are reducing management layers, indicating a commitment to research and investment capabilities [1][3][7] - The company has experienced significant turnover in its investment research talent, with nine fund managers leaving in the past year, prompting the need for internal promotions to stabilize the team [7][8] Group 1: Executive Appointments - China Merchants Fund appointed Zhu Hongyu, Wang Jing, and Chen Fangyuan as company chiefs, a rare large-scale executive change in the industry [1][3] - Zhu Hongyu and Wang Jing were previously in roles as Chief Research Officer and Assistant General Manager, respectively, while Chen Fangyuan served as Chief Institutional Business Officer [3] Group 2: Performance Metrics - Zhu Hongyu manages funds with a total scale of 50.80 billion yuan, achieving a return of 45.61% for the "China Merchants Core Competitiveness" fund, ranking 222 out of 2878 similar products [4] - Wang Jing manages funds totaling 60.67 billion yuan, but has faced challenges with significant losses in several products, including a 41.90% decline in the "China Merchants Jin'an Growth Select" fund [4][5] Group 3: Industry Context - The public fund industry has seen a trend of senior fund managers resigning due to performance pressures and administrative burdens, contrasting with China Merchants Fund's strategy of promoting from within [3][7] - The company has reported stagnant revenue and profit figures over the past few years, with operating income of 57.57 billion yuan in 2022, 52.94 billion yuan in 2023, and 53.08 billion yuan in 2024, alongside net profits of 18.13 billion yuan, 17.53 billion yuan, and 16.5 billion yuan respectively [7]

Core Viewpoint - The first innovative floating fee rate product from China Merchants Fund, named "China Merchants Value Select Mixed Securities Investment Fund," has been approved and is set to launch on June 4, 2025, aiming to align the interests of fund managers and investors through a performance-linked fee structure [2]. Fee Structure - The management fee for the fund is structured in three tiers: - 1.50% per year if the annualized return exceeds the benchmark return by 6% or more - 0.60% per year if the return falls below the benchmark by 3% or more - 1.20% per year for all other scenarios - This model breaks away from traditional fixed management fees, incentivizing fund managers to pursue excess returns and encouraging long-term investment by reducing short-term trading volatility [3]. Fund Management - The fund will be managed by Zhu Hongyu, who has 18 years of investment research experience and is currently the Chief Research Officer at China Merchants Fund. His management scale peaked at 11.978 billion yuan in 2023 but decreased to 5.08 billion yuan by May 2025 due to market adjustments and underperformance of certain products [3]. Historical Performance - Zhu Hongyu's previous funds include "China Merchants Core Competitiveness A," which achieved a return of 45.75% since its inception, and "China Merchants Social Responsibility A," which reported a loss of 2.29% over two years [4]. - The fund manager faced controversy for heavily investing in Weining Health, which saw a significant drop in stock price after the company's chairman was placed under investigation, leading to a 31% decline in one month [5].