Core Viewpoint - The performance of the Xin Yuan Fund's actively managed equity product has significantly underperformed in a generally rising A-share market, with a year-to-date decline of approximately 21%, placing it at the bottom of the market [2][3]. Group 1: Fund Performance and Management - The Xin Yuan Consumption Selection Mixed Fund has experienced a net value decline of about 50% since its establishment on March 24, 2023, ranking 4476th and 4477th among 4477 similar products for its A and C shares respectively [3]. - The fund has undergone frequent changes in its top ten holdings, with seven out of ten stocks being replaced from the second to the third quarter, indicating a highly aggressive trading style that contrasts with its long-term consumption theme [5]. - The current fund manager, Yao Qipin, is relatively inexperienced, managing this fund as his first, which raises concerns about the fund's stability and predictability [6]. Group 2: Company Background and Challenges - Xin Yuan Fund, established in 2013, has a significant focus on fixed income, with nearly 60% of its assets in bond funds, while equity funds only account for 3.13% of its total assets [8]. - The company has seen a major overhaul in its management team, with a new general manager and three new deputy general managers appointed, reflecting a shift in strategy amid underperformance in equity funds [8][21]. - Despite the overall growth in fund management scale, the company faces profitability pressures, with revenue and net profit fluctuating significantly over the past few years [22]. Group 3: Market Context and Future Outlook - The public fund issuance market has warmed up, particularly for equity funds, with many new products being launched by Xin Yuan Fund, indicating an aggressive push to capture market share [10][11]. - The company’s mixed funds have underperformed compared to peers over various time frames, suggesting challenges in achieving competitive returns [11]. - The upcoming end of the three-year lock-up period for the Xin Yuan Consumption Selection Mixed Fund poses a risk of potential liquidation if performance does not improve [8].