Group 1 - In 2024, over 300 funds exited the market, marking a historic peak in fund liquidations [1] - In the first half of 2025, 129 funds announced liquidation, surpassing the same period last year [1] - Performance divergence has led to significant capital migration, with the bottom 20% of active equity funds experiencing substantial shrinkage, while the top 20% saw growth [1] Group 2 - From July 1 to July 11, 2025, nine funds were liquidated, including four initiated funds [1] - Notable underperformers include Dongcai Quality Life Selected and Yongying Excellent Selection, with returns of -17.80% and -22.86% respectively since inception [2] - The liquidation of initiated funds is primarily driven by two factors: failure to meet the minimum scale requirement of 200 million yuan and poor performance leading to investor redemptions [3] Group 3 - The initiated fund liquidation trend reflects several key industry trends, including a lack of profitability in the A-share market and decreased investor interest in equity funds [3] - Smaller fund companies have a higher liquidation rate for initiated funds, indicating a need for improvement in product marketing and investor education [3] - The liquidation mechanism encourages fund managers to focus on product design and market alignment, promoting a shift towards higher quality development in the industry [3] Group 4 - The process for handling remaining assets after initiated fund liquidation includes paying liquidation fees, settling tax obligations, and clearing fund debts [4][5] - Remaining assets are distributed to investors based on their shareholding proportions after all obligations are settled [6] - The distribution of remaining assets typically occurs in cash and may take around six months, subject to liquidity constraints [7]

Core Viewpoint - The West Asset Management Fund announced the termination of its "West Asset Management Seasonal Fund" due to its net asset value falling below 200 million yuan, triggering automatic termination as per the fund contract [1][2][4]. Fund Termination and Liquidation Process - The fund was established on May 17, 2022, and will automatically terminate on May 17, 2025, as its net asset value has dropped below the stipulated threshold of 200 million yuan [1][2]. - The last operational day for the fund was May 17, 2025, and it officially entered the liquidation process on May 18, 2025 [4]. - During the liquidation period, the fund will cease to charge management, custody, and sales service fees to protect investor interests [4]. Liquidation Procedures and Investor Rights - A liquidation team will be established within 30 working days, operating under the supervision of the China Securities Regulatory Commission [4]. - The liquidation process is expected to take approximately six months, with potential extensions in special circumstances [5]. - All related costs during liquidation, including transaction fees, legal fees, and accounting fees, will be prioritized for payment from the remaining fund assets [5]. - The liquidation team will manage the fund's assets, clear debts, and prepare a liquidation report, which will be audited and submitted to the regulatory authority [5]. Market Impact and Industry Trends - The termination of the West Asset Management Seasonal Fund is indicative of a broader trend in the fund industry, where smaller or underperforming funds are increasingly being liquidated due to market changes and regulatory adjustments [5]. - The performance of fund-of-funds (FOF) is influenced by various factors, including market volatility and investor behavior, which can lead to challenges in maintaining adequate asset sizes [5]. - Investors are advised to pay close attention to fund management announcements regarding liquidation progress and asset distribution, and to consider fund size, investment strategy, and risk management when selecting funds in the future [5].

Core Insights - The public fund industry is undergoing a process of elimination, with an increase in fund liquidations due to intense competition and market saturation [1][4][7] - A total of 91 funds have been liquidated this year, marking a 15.19% increase compared to the same period last year, with the majority being equity mixed funds [4][6] - The rise in fund liquidations is attributed to the poor performance of many actively managed equity products, leading to continuous redemptions and eventual closures [7] Fund Liquidation Details - On May 19, multiple fund managers announced the termination and liquidation of several products, including a mixed FOF and two mixed funds [2][3] - The West China Fund's FOF was automatically terminated due to its net asset value falling below 200 million yuan, triggering a liquidation process without a holder meeting [2][3] - Other funds, including those from FuGuo and RuiDa, also faced liquidation for similar reasons, primarily due to asset sizes below 200 million yuan after three years of operation [3] Market Trends - The majority of liquidated funds this year belong to 51 different fund management companies, with ChunHou Fund having the highest number of liquidations at six products [4][6] - There are over 1,041 "mini funds" in the market with assets below 50 million yuan, indicating a significant number of funds are on the brink of liquidation [5][6] - The competitive landscape is pushing fund managers to enhance product competitiveness and service capabilities to avoid being eliminated [7]