Core Viewpoint - The recent introduction of floating management fee products represents a significant step in the fee reform of public funds, providing new choices for investors while posing challenges to the operational models and investment strategies of the fund industry [2][4]. Product Submission - Recently, 26 major fund management companies, including E Fund, Huaxia Fund, and GF Fund, have submitted floating management fee products for approval, indicating a strong industry response to the fee reform [4]. - The first batch of submitted products primarily targets mainstream broad-based indices such as CSI 300 and CSI 500, focusing on full-market stock selection [4]. Fee Structure Innovation - The new floating management fee products innovate the fee structure by linking management fees to both the holding period and the performance during that period, unlike previous models that were primarily based on fund size or investor holding time [6]. - For instance, if an investor holds the product for over one year and achieves an annualized excess return exceeding 6%, the management fee could be set at 1.50% [6]. Challenges Faced - Fund managers face new challenges in managing floating fee products, as their management fees are closely tied to performance, necessitating precise market trend analysis and portfolio optimization [8][9]. - The complexity of the new fee structure requires significant system upgrades for fund companies, especially for smaller firms, to handle the individualized fee calculations for each investor [10][11]. Ecosystem Development - The introduction of floating management fee products is seen as a crucial exploration for the public fund industry, aiming to strengthen the alignment of interests between fund managers and investors [14]. - As regulatory guidance evolves, floating management fee products are expected to become a mainstream model in fund issuance, promoting a shift away from short-term profit chasing towards sustainable investment returns [15].

Core Viewpoint - The recent approval of floating management fee fund products marks a significant step in the fee reform of public funds, providing new options for investors while posing challenges to the fund industry’s operational models and investment strategies [2][10]. Product Submission - The recent submission of floating management fee products includes 26 leading fund management institutions such as E Fund, Huaxia Fund, and GF Fund, indicating strong participation from both large and small fund companies [3][4]. Fee Structure Innovation - The new floating management fee products innovate the fee structure by linking management fees to both the holding period and the performance during that period, contrasting with previous models that primarily linked fees to fund size or investor holding time [5][10]. Challenges Faced - Fund managers face new challenges in managing floating fee funds, as their fees are closely tied to performance, necessitating precise market assessments and optimized investment portfolios to exceed performance benchmarks [6][7]. Operational Changes - The introduction of floating management fee products necessitates significant changes in fund operations, requiring advanced systems to handle complex fee calculations based on individual investor performance and holding periods [8][10]. Investor Implications - The design of floating management fee products encourages long-term investment by linking fees to holding periods and performance, potentially reducing short-term trading and promoting a focus on long-term returns [9][10]. Future Outlook - The floating management fee product is seen as a potential mainstream model for future fund issuance, with expectations for more refined designs and diverse investment strategies as regulatory frameworks evolve [10][11].