Group 1 - Seven new equity funds were established in early July, including three on July 1 and four on July 2, with a mix of passive index funds, enhanced index funds, and mixed funds [1] - As of July 3, there are 67 funds currently being issued, with 50 being equity funds, accounting for 74.63% of the total; among these, 34 are passive index funds, making up 50.75% [3] - In July, 44 funds are scheduled for issuance, with 32 being equity funds, representing 72.73%; 19 of these are passive index funds, which account for 43.18% [3] Group 2 - The popularity of passive index funds is attributed to three core advantages: clear and stable investment style, high transparency in holdings, and improved market recognition due to ongoing investor education [3] - Public fund institutions are diversifying their passive index fund offerings, focusing on broad indices like the CSI A500 and CSI A100, as well as thematic ETFs in sectors such as healthcare, robotics, aerospace, software, and central enterprise dividends [3]

Core Viewpoint - The launch of the Morgan CSI 300 Free Cash Flow ETF and its corresponding fund aims to provide investors with a convenient tool to invest in high-quality companies with strong free cash flow, aligning with China's economic high-quality development [1][2]. Group 1: Fund Launch and Features - The Morgan CSI 300 Free Cash Flow ETF Connect Fund (Class A: 024613, Class C: 024614) will officially launch on June 16, allowing investors to purchase through major banks and online platforms [1]. - The fund aims to indirectly invest in the Morgan CSI 300 Free Cash Flow ETF, which focuses on companies within the CSI 300 index that have positive free cash flow and high earnings quality, excluding financial and real estate sectors [1][2]. - A unique quarterly dividend evaluation mechanism will be implemented, assessing the fund's excess return relative to its benchmark and available distributable profits, potentially enhancing investor satisfaction [2]. Group 2: Historical Performance and Investment Rationale - The CSI 300 Free Cash Flow Index has shown strong historical performance, achieving positive returns in 8 out of the last 11 years, with an annualized return of 14.2% since its inception [2]. - The index has demonstrated strong downside protection, with a maximum drawdown of -17.4% over the past five years, outperforming other indices in the same period [2]. - The current low-interest-rate environment and policy encouragement for companies to distribute dividends enhance the attractiveness of high free cash flow assets, as they are seen as financially healthy and capable of sustaining growth [3].