Guidelines for Public Fund Performance Benchmarks Officially Implemented on March 1

Viewpoint Network News: On March 2nd, the China Securities Regulatory Commission officially implemented the “Guidelines for Performance Benchmarks of Publicly Offered Securities Investment Funds” starting March 1st, marking a “benchmark test” for the public fund industry.

The “Guidelines” consist of six chapters and twenty-one articles, aiming to standardize the selection and use of performance benchmarks for public funds, strengthen the representational role and stability of benchmarks, and urge fund managers to improve internal control mechanisms. The new regulations require that performance benchmarks match the core elements and investment styles specified in the fund contract, and once selected, they cannot be arbitrarily changed.

Industry insiders reveal that many fund companies have submitted benchmark adjustment plans to regulators, undergoing multiple rounds of communication and optimization. The regulatory authorities focus on the alignment between benchmarks and actual investments, the reasonableness of benchmark setting, and the priority of adjustments and implementation, demanding more detailed and strict documentation.

For the public fund industry, adjustments to performance benchmarks are driving a comprehensive transformation. New products will strictly follow the new regulations, while existing products will have a one-year transition period. Industry competition is shifting from short-term performance battles to developing product lines and investment capabilities that are logically clear, structurally diverse, and have long-term vitality. Reforms in investment research assessment, incentive risk control, third-party sales, and investment advisory services are also imperative.

Disclaimer: The content and data of this article are compiled by Viewpoint based on publicly available information and do not constitute investment advice. Please verify before use.