Core Insights - The article discusses the performance of actively managed equity funds in the context of the recent bull market, highlighting that 38% of these funds remain in a loss position over the past five years despite a significant number achieving positive returns since 2025 [2][3][4]. Performance Overview - As of November 10, 2023, the Shanghai Composite Index has risen by 19.42% since 2025, with 97.45% of actively managed equity funds reporting positive returns this year [4]. - However, 1,019 actively managed equity funds are still in a loss position over the past five years, with 302 funds having reduced their maximum drawdown to less than 10% [5][6]. Reasons for Underperformance - The article identifies three main reasons for the underperformance of many funds: high-level accumulation, frequent trading, and reliance on specific sectors [7][8]. - Funds that experienced negative returns had an average stock position of 84.22% during peak market periods, indicating a tendency to increase exposure during high valuations [7]. Trading Behavior - The average turnover rate for actively managed equity funds from 2021 to 2024 was 460.71%, with funds losing over 30% seeing an even higher turnover rate of 508.45% [8]. - Some funds, such as Tianzhi New Consumption and Guodu Innovation Drive, reported turnover rates exceeding 1,000%, indicating excessive trading activity [8]. Sector Dependence - Many funds have shown a heavy reliance on traditional sectors despite being marketed as focusing on new or innovative sectors, leading to performance discrepancies [10][11]. - For instance, funds like Tianzhi New Consumption and Invesco Great Wall New Growth have maintained significant positions in traditional consumer stocks, which have not performed well recently [10][11]. Market Outlook - The article notes a resurgence in investor interest in actively managed funds, with 1,354 new funds launched in 2023, reflecting a doubling in issuance compared to the previous year [12]. - Fund managers are advised to focus on sectors with long-term growth potential, such as high-end manufacturing and innovative pharmaceuticals, while being cautious of market volatility [13][14].

Core Insights - The recent performance of active equity funds has been under scrutiny, with over 38% of these funds still in losses over the past five years despite a significant number achieving positive returns since 2025 [1][2][3] - Key factors contributing to the underperformance include high-level accumulation, frequent trading, and reliance on specific sectors, which have eroded fund values [1][5][7] Performance Overview - As of November 10, 2025, the Shanghai Composite Index has risen by 19.42%, while 97.45% of active equity funds reported positive returns [2][3] - However, 1019 active equity funds remain in losses, with 38% of the total, indicating a stark contrast in performance for investors who entered the market earlier [1][2] Fund Performance Analysis - Among the 2695 active equity funds with over five years of existence, 1676 have achieved positive returns, with six funds reporting over 200% returns [3] - Conversely, nearly 40% of active equity funds have not turned a profit in five years, with some funds experiencing maximum drawdowns starting in 2021 [3][4] Underperforming Funds - Notable underperformers include funds managed by well-known managers, with losses exceeding 30% over five years [4] - Specific funds like Tianzhi New Consumption and Fangzheng Fubang Innovation Power have reported losses of -65.25% and -62.32%, respectively [3][4] Trading Behavior - High average stock positions during market peaks have been linked to poor long-term performance, with funds showing an average stock position of 84.22% during critical periods [5][6] - Frequent trading has also negatively impacted fund performance, with an average turnover rate of 460.71% across all active equity funds, rising to 508.45% for those with over 30% losses [7][8] Sector Reliance - Many funds have shown over-reliance on traditional sectors, leading to underperformance despite being labeled as "new" or "growth" funds [8][9] - Funds like Tianzhi New Consumption and Invesco Great Wall New Growth have shifted their holdings but still struggle to achieve positive returns [8][9] Market Outlook - The active equity fund market is seeing a resurgence, with 1354 new funds launched in 2025, indicating renewed investor interest [11] - Fund managers are advised to focus on sectors with long-term growth potential, such as high-end manufacturing and new consumption, while being cautious of market volatility [12]

Core Insights - The article highlights the performance of active equity funds in the context of the Shanghai Composite Index surpassing 4000 points for the first time in a decade, revealing that over 97% of these funds achieved positive returns since 2025, yet 38% remain in losses over the past five years [1][2][3] - Key reasons for the underperformance of many active funds include high-level accumulation, frequent trading, and reliance on specific sectors, which have eroded fund values [1][5][6] Performance Overview - As of November 10, the Shanghai Composite Index closed at 4018 points, marking a significant recovery, with major indices like the Shenzhen Composite and ChiNext Index showing gains of 27.6% and 46.35% respectively since 2025 [2] - Despite a high percentage of active equity funds showing positive returns in 2023, the long-term performance reveals a stark contrast, with many investors experiencing losses since entering the market around the end of 2020 [2][3] Fund Performance Analysis - Among the 2695 active equity funds with over five years of existence, 1676 have achieved positive returns, while nearly 40% remain unprofitable, with some funds experiencing drawdowns exceeding 50% [3][4] - Notable underperformers include funds managed by well-known managers, indicating that even established names are not immune to market challenges [4] Causes of Underperformance - High-level accumulation during market peaks has been identified as a significant factor contributing to the long-term underperformance of active equity funds [5][6] - Frequent trading has also negatively impacted fund performance, with average turnover rates for underperforming funds significantly higher than the market average [7][8] Market Trends and Future Outlook - The article notes a shift in investor sentiment towards active management products, with a notable increase in the number of newly established funds and a doubling of issuance scale compared to the previous year [11] - Fund managers are advised to focus on sectors with long-term growth potential, such as high-end manufacturing and new consumption, while being cautious of over-reliance on specific themes or sectors [12]

Core Viewpoint - The resurgence of public fund self-purchases reflects confidence in the market, with multiple fund companies actively investing in their own equity products to support the A-share market [1][2]. Group 1: Fund Self-Purchase Activity - On July 28, 2025, Fangzheng Fubon Fund announced a self-purchase of at least 25 million yuan in its equity public funds, committing to hold these investments for no less than one year [3][5]. - This marks the second self-purchase by Fangzheng Fubon Fund in 2025, following a previous investment of 5 million yuan in April for a specific ETF product [5]. - A total of 126 public fund companies have initiated self-purchases since the beginning of 2025, with 55 companies focusing on stock funds and 71 on mixed funds [1]. Group 2: Market Confidence and Economic Outlook - The self-purchase actions are interpreted as a positive signal from institutional investors regarding future market trends, supported by favorable policies and economic fundamentals [6]. - The outlook for the second half of 2025 remains optimistic, with expectations of continued macroeconomic policy easing and improvements in industry profitability due to recent government measures [6]. - Key drivers for the A-share market in the latter half of 2025 are identified as "policy easing, asset scarcity, and industrial upgrades" [6]. Group 3: Product Innovation and Performance - Fangzheng Fubon Fund has been enhancing its product matrix, focusing on both equity and fixed-income products to drive growth [10]. - The fund's fixed-income products have shown strong performance, with an absolute return of 11.6% over the past three years, ranking 13th among 150 fund companies [8]. - The fund is actively exploring new investment opportunities in emerging industries, such as humanoid robots and military technology, with notable returns from specific funds [9].

Core Viewpoint - The "Action Plan for High-Quality Development of Public Funds" released by the China Securities Regulatory Commission (CSRC) aims to reshape the fund industry ecosystem and significantly influence the behavior of fund managers and investors [1][2]. Summary by Sections Regulatory Changes - The CSRC has emphasized the importance of performance benchmarks for public funds, requiring fund companies to establish a compensation management mechanism linked to investment returns and to improve industry assessment and evaluation systems [1][2]. - A clear performance benchmark will be set for each fund to avoid issues like style drift and misalignment with product names and positioning [2]. Industry Response - As of May 7, 2023, at least 61 fund products have changed their performance benchmarks, a significant increase from 19 in the same period last year, indicating a strong signal of accelerated industry standardization [1][2]. - Some fund companies had already anticipated these regulatory changes and made adjustments in advance [2]. Benchmark Adjustments - Specific funds have updated their performance benchmarks to better reflect their investment strategies, such as changing from the CSI 300 Index to more relevant indices like the CSI TMT Industry Theme Index [3][5]. - In the bond fund category, adjustments have also been made, with some funds shifting their benchmarks to better align with their investment focus [3]. Investor Awareness - Despite the importance of performance benchmarks, many investors remain largely unaware or indifferent to them, often focusing more on absolute returns rather than relative performance against benchmarks [6]. - The CSRC's new regulations aim to correct this oversight by linking fund manager assessments directly to performance benchmarks, thereby enhancing the evaluation of fund performance [7][8]. Implications for Fund Managers - The new benchmark regulations are expected to help fund managers focus their investment strategies more effectively, reducing the likelihood of style drift and promoting a clearer investment approach [8]. - Fund managers will be evaluated based on their performance relative to these benchmarks, which could lead to more stable and predictable fund styles for investors [8].