Core Viewpoint - The active equity funds in the public offering market have performed exceptionally well this year, with over 98% achieving positive returns and 75% outperforming the market benchmark (CSI 300 Index up by 14.95%) [3][4]. Group 1: Performance of Active Equity Funds - More than 98% of active equity funds have recorded positive returns this year, with 75% surpassing the market performance [3]. - The top three active equity fund managers among licensed public funds are Dongzheng Asset Management, Caitong Asset Management, and Guotai Haitong Asset Management [3][4]. - Caitong Asset Management has a comprehensive product line in active equity funds, contributing to its strong performance in recent years [3]. Group 2: Caitong Asset Management's Fund Performance - Caitong Asset Management's 20 active equity funds have all achieved returns exceeding 20% this year, significantly outperforming the CSI 300 Index [5]. - Over the past year, all but one of Caitong's funds have returned over 50%, with four funds doubling their value [5]. - The firm has successfully positioned itself in various sectors, including technology, manufacturing, and consumption, leading to substantial returns [5][24]. Group 3: Investment Strategies and Fund Management - Caitong Asset Management employs a diverse range of investment strategies across its funds, focusing on sectors such as technology, advanced manufacturing, and consumer goods [6][20]. - The firm has adopted a structured approach to fund management, utilizing a three-tiered structure that balances core holdings with tactical positions [29]. - The investment philosophy emphasizes a combination of industry insights and rigorous research, enabling the team to identify trends and opportunities effectively [44][45]. Group 4: Research and Development - Caitong Asset Management's investment team consists of approximately 40 members, with 20 dedicated researchers focusing on various sectors [45]. - The firm integrates a comprehensive research approach into its investment strategy, enhancing the decision-making process and aligning with long-term absolute return goals [46][47]. - The success of Caitong's equity products is attributed to a systematic approach that combines industry perspective, research empowerment, and a focus on absolute returns [47].

Core Viewpoint - The performance of active equity funds has significantly outperformed passive index funds in 2023, but rebuilding investor trust will take time [4][5][8]. Group 1: Performance Comparison - As of the end of July, over 70% of active equity funds outperformed their benchmarks, a notable increase from less than 30% in the previous year [5]. - The average return of active equity funds this year is 14.05%, surpassing major indices like CSI 300 (3.58%) and CSI 500 (8.74%), with 92.33% of active funds achieving positive returns [7]. - In contrast, passive index funds have an average return of 10.94% this year, with 90.38% showing positive returns [7]. Group 2: Sector Performance - The innovative drug sector has emerged as a significant winner among active equity funds, with top-performing funds achieving returns exceeding 100% [8]. - Specific funds like Changcheng Medical Industry Selection and Zhongyin Hong Kong Stock Connect Medicine have led the pack with returns of 127.05% and others closely following [7]. Group 3: Redemption Pressure - Despite strong performance, active equity funds face increasing redemption pressure, with total assets decreasing by 366.62 billion and total shares down by 866.98 million in Q2 [9]. - Notably, funds with strong performance, such as Huatai-PineBridge Innovation Medicine, have seen significant inflows, indicating that individual fund performance can attract investor interest [9][11]. Group 4: Investor Behavior - The "anchoring effect" in behavioral finance suggests that past performance influences current investor decisions, leading many to hold onto funds that have not performed well in recent years [15]. - The growth of "fixed income plus" funds and multi-asset strategies reflects a shift in investor preference towards more stable products amid the challenges faced by active equity funds [15][16]. Group 5: Future Outlook - Historical trends indicate that active equity funds excel in identifying growth opportunities in emerging sectors, suggesting potential for future outperformance as market conditions evolve [18]. - The transition from a "star-driven" to a "return-driven" approach in the industry may pave the way for a resurgence in investor confidence in active equity funds [18].