Core Insights - Publicly offered funds of funds (FOFs) have achieved their best performance in five years, primarily due to heavy investments in equity funds, particularly in the pharmaceutical and technology sectors [1] - The shift from bond funds to equity funds has become a new growth highlight for public FOFs, with over 90% of FOFs showing positive returns this year [1] - The top 10 FOFs in the market have significantly increased their allocations to high-volatility equity funds while reducing their investments in bond funds and conservative balanced funds [1] Performance Metrics - The best-performing FOF product has recorded a return of 34.28% year-to-date, a stark contrast to the best return of only 0.29% in the 2022 fiscal year [1] - The overall market performance indicates a strong recovery and positive sentiment towards equity investments among FOFs [1]

Core Viewpoint - The total net asset value of public funds in China reached a historical high of 34.39 trillion yuan as of June 30, 2025, with significant contributions from bond funds and a mixed performance in equity funds [1][3][4]. Fund Size Growth - As of June 30, 2025, there are 164 public fund management institutions in China, managing a total net asset value of 34.39 trillion yuan, marking a growth of 651.9 billion yuan from the end of May [3][4]. - The public bond fund size increased by 507.8 billion yuan in June, reaching 7.28 trillion yuan, with a year-to-date growth trend observed over four consecutive months [6][5]. Bond Fund Performance - Bond funds were the main contributors to the overall growth, with a monthly increase exceeding 500 billion yuan in June [5]. - The bond market is expected to remain bullish in the second half of the year, supported by favorable fundamentals and liquidity conditions, although there are concerns regarding high leverage and duration risks in a low volatility environment [8][7]. Equity Fund Performance - The A-share market showed positive performance in June, with the Shanghai Composite Index rising by 2.9%, leading to an increase in the size of equity funds [9]. - Stock funds and mixed funds saw increases of 148.3 billion yuan and 121.3 billion yuan, respectively, with growth rates of 3.24% and 3.4% [10]. New Fund Issuance - In June, 110 new equity funds were established, raising a total of 51.6 billion yuan, accounting for approximately 40% of the total new fund issuance [11]. - The outlook for the A-share market remains optimistic, driven by sectors such as AI, military, and innovative pharmaceuticals, alongside supportive domestic policies [11]. QDII Fund Growth - QDII funds experienced a growth of approximately 4.51%, reaching a total size of 683.7 billion yuan by the end of June, benefiting from strong inflows and favorable market conditions [12][13].

Core Viewpoint - The public fund industry is experiencing a notable shift where several senior fund managers are choosing to step down from executive roles to focus on their investment responsibilities, indicating a new phase in the industry's development [1][2][4]. Group 1: Changes in Executive Roles - Senior fund managers, particularly those at the vice president level, are increasingly resigning from their executive positions to return to their roles as fund managers, as seen with notable figures like Yang Gu from Nuon Fund and others from various firms [1][2]. - This trend reflects a broader industry movement towards prioritizing investment expertise over management roles, as the dual responsibilities can lead to burnout and hinder effective investment decision-making [2][4]. Group 2: Implications for Investment Performance - The return of these senior managers to investment roles is expected to enhance the investment capabilities of their firms, as their focus will shift back to research and investment performance, which is crucial for the success of actively managed funds [4]. - The industry is recognizing that without strong investment performance, even large fund sizes can lead to dissatisfaction among investors, emphasizing the importance of performance over scale [4]. Group 3: Industry Trends and Future Outlook - The shift away from dual roles is seen as a response to the increasing importance of professional investment in the public fund industry, as passive investment products like ETFs gain popularity [4]. - The trend also highlights a need for better talent cultivation and incentives within the industry, ensuring that core investment personnel are respected and adequately compensated for their expertise [4].