Core Viewpoint - Several funds have announced liquidation despite rising net values, particularly in the strong-performing pharmaceutical sector, due to failure to meet the required scale after three years [1][2]. Group 1: Fund Performance and Liquidation - Many initiated funds have faced liquidation as they failed to pass the "scale test" after three years, even if they had strong performance [2]. - As of June 15, the market was led by sectors like "new consumption" and innovative pharmaceuticals, with related thematic funds showing significant gains [3]. - For example, the Huazhong Innovation Pharmaceutical Fund had a net value increase of 22% by April 1, but had to liquidate due to a total scale of only 11 million yuan, far from the 200 million yuan threshold [4]. Group 2: Challenges of Initiated Funds - Initiated funds face significant challenges due to their low starting point for fundraising, which makes them more susceptible to market fluctuations [5]. - The automatic termination clause for initiated funds means that even with good performance, they must achieve rapid scale growth within three years to avoid liquidation [5]. - In contrast, regular public funds only need to maintain a net asset value of at least 5 million yuan for 60 consecutive days to avoid liquidation risk [5]. Group 3: Market Dynamics and Fund Management - The market has seen accelerated rotation in recent years, leading to a cautious approach from investors regarding the sustainability of fund performance [6]. - High operational costs associated with smaller initiated funds can erode returns, making it difficult to attract new investments [7]. - Successful cases of initiated funds overcoming scale challenges highlight the necessity of strong performance and support from distribution channels [8][9]. Group 4: Success Stories - Some initiated funds have successfully scaled up, such as Yongying Advanced Manufacturing, which grew from 300 million yuan to 11.5 billion yuan due to strong performance in the robotics sector [8]. - Other successful examples include funds like China Europe Era Pioneer, which achieved a cumulative return of 112% since its inception [8]. - The competitive landscape for funds is intense, and achieving significant scale requires not only good performance but also strategic support and resources [9].

Group 1 - Several initiated funds have been liquidated this year despite having strong performance, primarily due to failing to meet the minimum asset size requirement after three years [1][2] - For example, the Huazhong Innovation Pharmaceutical Fund had a year-to-date net value increase of 22% but was forced to liquidate due to its size being only 11 million yuan, far below the 200 million yuan threshold [1] - Similarly, the Jinying Quality Consumption Fund, which held stocks like Tencent and Pop Mart, was liquidated on May 20 despite its holdings performing well [1] Group 2 - The Fuyong Medical Health Fund is at risk of termination if its size remains below 200 million yuan by June 2025, with its current size at approximately 13 million yuan [2] - Initiated funds face significant challenges in maintaining their size due to their lower fundraising thresholds and stricter exit mechanisms, which can lead to rapid liquidation in volatile markets [2][3] - Unlike regular public funds, which only need to maintain a net asset value of 5 million yuan for 60 consecutive days to avoid liquidation, initiated funds must achieve substantial growth within three years [3] Group 3 - The operational costs of initiated funds are often high due to their smaller management scale, which can erode returns and hinder the attraction of new capital [4] - Successful growth of initiated funds requires not only good performance but also strong support in terms of distribution channels and marketing resources [4] - Many initiated funds are created to train new talent or fill gaps in institutional channels, indicating that performance alone is insufficient for long-term survival [4]

Core Viewpoint - The article discusses the recent trend of mutual funds facing liquidation despite some having strong performance, highlighting a disconnect between fund performance and investor interest [1][4]. Group 1: Fund Performance and Liquidation - Several funds are at risk of liquidation due to low asset values, even as their net asset values reach new highs, indicating a paradox where strong performance does not attract sufficient investment [1][4]. - For instance, the Shenwan Lingxin Dividend Quantitative Stock Fund has seen its net asset value rise while its total assets fell below 50 million yuan, leading to liquidation warnings [4]. - Similarly, the Jiashi Ark One-Year Holding Fund has maintained a high net value but has also dropped below the 50 million yuan threshold for an extended period [4]. Group 2: Investor Behavior - Investors exhibit a "cash out" mentality, leading to a trend where they sell off shares even as fund values increase, resulting in a situation where funds experience "sell on the rise" behavior [2][6]. - The article notes that many investors prefer larger, well-known funds, which can lead to smaller funds struggling to attract capital despite good performance [6]. Group 3: Institutional Investors and Fund Dynamics - Some funds are facing liquidation due to significant redemptions by single large investors, which can drastically reduce fund size and push them below the liquidation threshold [3][7]. - The article highlights that certain funds, like the Nuode Anyuan Pure Bond Fund, have a high concentration of holdings by single investors, making them vulnerable to rapid outflows [7][8]. - Institutional investors often redeem their shares after achieving desired returns or reallocating their assets, which can lead to sudden drops in fund size [8].