Chinese active funds are introducing new products to align interests with investors

From Yahoo Finance: 2025-05-16 02:37:00

New rules in China’s mutual fund industry aim to promote long-term value investing. Major players like China Asset Management are introducing variable-fee products to align fund managers’ interests with investors. Portfolio managers face pay cuts for underperforming benchmarks by 10% over three years, encouraging balanced portfolios and better performance. The success of funds will now be measured by performance and investor satisfaction, not profit or assets under management. These changes are expected to shift fund flows towards index heavyweights like banks, which are currently underrepresented in active fund portfolios.



Read more at Yahoo Finance: Chinese active funds gear up with fresh products after dramatic industry reforms