Core Viewpoint - E Fund is launching a new mixed equity fund, E Fund Industry Preferred, which will be publicly offered starting October 20, 2023, with a focus on long-term investment through a floating fee structure [1] Fund Details - The fund is a mixed equity fund with 60% to 95% of its assets in stocks, and no more than 50% of stock assets in Hong Kong Stock Connect stocks [1] - The fund will be co-managed by experienced manager Qi He and newcomer manager Fang Xincheng [1] Fee Structure - The fund adopts a floating fee rate model, marking E Fund's third new floating fee product [1] - If investors hold shares for less than one year, a management fee of 1.2% per year will be charged [1] - For holdings of one year or more, the management fee will vary based on annual excess return levels, with three different rates applicable: - 1.50% per year if the annual return is positive and exceeds the benchmark by more than 6% - 0.6% per year if the annual return underperforms the benchmark by 3% or more - 1.2% per year for all other scenarios [1] Industry Context - Since the release of the "Action Plan for Promoting the High-Quality Development of Public Funds" in May 2023, E Fund and other fund companies have been actively developing new floating fee products [1] - The differentiated fee structure aims to encourage long-term investment and align the interests of investors and fund managers [1]