The Securities Regulatory Commission recently issued the “Performance Assessment Guidelines for Fund Management Companies” to public equity managers, which clearly stipulate that fund management companies should establish a tiered performance compensation adjustment mechanism based on the performance comparison benchmark of active equity fund managers over the past three years and the different circumstances of fund profit margins. According to Wind data, as of December 5, there were 8,546 active equity funds in the entire market, excluding 2,417 that had been established for less than three years. A total of 6,129 funds were included in the statistics. According to the performance classification of salary adjustments according to this “Draft for Solicitation of Comments”, there are 3,708 active equity funds that have not outperformed the performance comparison benchmark in the past three years, accounting for 60.5% of the total. Among them, 2,454 funds fell below the performance benchmark by more than 10%, accounting for 40%. There were 943 that exceeded the performance comparison benchmark by less than 10%, 1,261 that exceeded 10% by 50%, 181 that exceeded 50% by less than 100%, and 36 that exceeded 100%. The reporter learned that currently, a number of public equity firms are stepping up internal checks on whether product performance comparison benchmarks are consistent with fund investment strategies, and whether adjustments are needed. Predictably, an overall transformation of the industry, based on performance comparison benchmarks, has begun.

The Securities Regulatory Commission recently issued the “Performance Assessment Guidelines for Fund Management Companies” to public equity managers, which clearly stipulate that fund management companies should establish a tiered performance compensation adjustment mechanism based on the performance comparison benchmark of active equity fund managers over the past three years and the different circumstances of fund profit margins. According to Wind data, as of December 5, there were 8,546 active equity funds in the entire market, excluding 2,417 that had been established for less than three years. A total of 6,129 funds were included in the statistics. According to the performance classification of salary adjustments according to this “Draft for Solicitation of Comments”, there are 3,708 active equity funds that have not outperformed the performance comparison benchmark in the past three years, accounting for 60.5% of the total. Among them, 2,454 funds fell below the performance benchmark by more than 10%, accounting for 40%. There were 943 that exceeded the performance comparison benchmark by less than 10%, 1,261 that exceeded 10% by 50%, 181 that exceeded 50% by less than 100%, and 36 that exceeded 100%. The reporter learned that currently, a number of public equity firms are stepping up internal checks on whether product performance comparison benchmarks are consistent with fund investment strategies, and whether adjustments are needed. Predictably, an overall transformation of the industry, based on performance comparison benchmarks, has begun.