The era of fund managers 'lying down to earn' may come to an end! The regulatory authorities have released a draft for public consultation on the performance assessment of fund managers, directly addressing the industry's pain points of 'investor losses and managers receiving salaries regardless'.
The rules are clear: If the actively managed equity fund manager's products underperform the benchmark by more than 10 percentage points over three years and remain in a loss, the performance compensation must be reduced by at least 30%; conversely, if the performance significantly outperforms the benchmark and achieves profitability, a salary increase is justifiable.
This assessment direction will deeply bind the earnings of fund managers to the interests of investors, forcing managers to focus on long-term performance, and the situation of 'earning high salaries regardless of profit or loss' may be completely broken in the future.
