Core Viewpoint - The article highlights the phenomenon of style drift in public funds, specifically focusing on the Jin Xin Fund's "Intelligent China 2025" mixed fund, which has deviated from its stated investment goal of focusing on intelligent enterprises by heavily investing in traditional financial stocks, resulting in poor performance compared to the market [3][4][11]. Group 1: Fund Performance - Jin Xin Intelligent China 2025 mixed fund reported a negative return of -1.95% and -2.10% for its A and C shares respectively in Q3, significantly underperforming the benchmark return of 12.19% and the CSI 300 index which rose by 17.90%, leading to a performance gap of nearly 20% [4][5]. - Year-to-date performance as of October 21 shows the fund's A shares with a return of 14.90%, ranking 1417 out of 2303 similar products, indicating a mid-to-low tier performance [6][7]. - The fund's total management scale decreased by 25.7% from 7.59 billion to 5.64 billion yuan in Q3 [6]. Group 2: Investment Strategy and Holdings - The fund's stated investment objective is to focus on enterprises providing intelligent production, design, and services, including sectors like smart machines and smart healthcare [8]. - However, the top ten holdings in Q3 were entirely traditional financial stocks, including major banks like ICBC and Ping An Bank, indicating a significant deviation from its stated investment strategy [9][10]. - The fund's historical trend shows a consistent increase in bank stock holdings since 2017, with at least 8 out of the top 10 holdings being bank stocks since 2018, demonstrating a long-standing style drift [11]. Group 3: Investor Sentiment and Concerns - Investors have expressed concerns regarding the fund's management and investment strategy, questioning the rationale behind the heavy allocation to traditional financial stocks despite the fund's focus on intelligent enterprises [12][15]. - The fund managers acknowledged the market volatility in Q3 but maintained that their strategy focused on the financial services sector's intelligence, which contrasts sharply with their actual stock selections [14][15]. - The article notes that frequent style shifts can lead to confusion among investors regarding the fund's positioning, potentially misleading them about the risk profile of the product [15].

Core Insights - A total of 10 mutual funds have been identified with style drift in Q2 2025, with some funds from major asset management firms like Harvest Fund, Huatai-PineBridge Fund, and China Merchants Jinling Fund [2][3] - The China Securities Regulatory Commission (CSRC) has emphasized the need for clear performance benchmarks for each fund to prevent deviations from their stated investment objectives [2][12] - As of August 18, 2025, five of the identified funds have underperformed their benchmarks over the past three years, indicating potential issues with their investment strategies [2][9] Fund Performance and Characteristics - The largest fund among those identified is the China Merchants Jinling Fund's "Innovation Leading" mixed fund, with a scale of 2.067 billion yuan, which has shown a significant style drift towards banking stocks [5][11] - Other funds with notable style drift include "Smart China 2025" and "Modern Service Industry," which have concentrated holdings in sectors that do not align with their thematic names [7][11] - The performance of the identified funds varies, with some achieving positive returns over the last three years, while others have recorded significant losses, such as the "Modern Service Industry" fund with a return of -55.17% [9][11] Regulatory Context - The CSRC has been actively addressing the issue of style drift in mutual funds, implementing measures to enhance the stability of fund investment behaviors and ensure that investors receive what they expect based on fund names [12][13] - Recent regulatory actions include the introduction of clearer guidelines for fund performance benchmarks and restrictions on excessive trading behaviors that may lead to style drift [12][13]

Core Viewpoint - Multiple public fund products have been identified as experiencing style drift, which may lead to investor losses due to discrepancies between actual investment styles and those stipulated in fund contracts [2][7]. Group 1: Style Drift Identification - In the second quarter of this year, 10 products were recognized for style drift, with an additional 3 products penalized for style drift in the first quarter [2]. - Notable funds affected include Qianhai Kaiyuan Great Security Mixed, Jinxin Intelligent China 2025 Mixed (A/C classes), and Taixin Modern Service Industry Mixed [2]. Group 2: Fund Definitions and Investment Focus - The Jinxin Intelligent China 2025 Mixed fund focuses on sectors related to intelligent production and services, with a minimum of 80% of non-cash assets invested in defined "Intelligent China 2025" themes [3]. - The Taixin Modern Service Industry Mixed fund allocates 60-95% of its assets to stocks, emphasizing productive and life service industries, including financial services, logistics, and healthcare [5][6]. Group 3: Fund Responses to Style Drift Concerns - Jinxin Fund representatives argue that their high allocation to bank stocks aligns with the intelligent service theme, citing low valuations and high dividend yields as justifications [4]. - Taixin Fund maintains that its investments in new technologies and services are consistent with the fund's definition of modern service industries, addressing concerns about style drift [6].