New Pay Rules Spotlight | Hua Yin Fund's Pang Wenjie Manages Under 2 Billion, All Three Products Underperform Benchmarks by Over 143% in Three Years

The fund industry's compensation reforms have recently drawn attention. Under new regulations from the Asset Management Association of China, if a fund manager's product yields fall more than 10 percentage points below their benchmarks over three years with negative profit margins, their performance pay must be cut by at least 30%. Additionally, fund firms must assess multi-product managers based on fund size and tenure, excluding funds managed for less than a year.

Wind data reveals that Pang Wenjie of Hua Yin Fund has seen significant underperformance across his three managed products in the past three years. Specifically: - SWEE HONG LIMITED Industrial Upgrade trailed its benchmark by 58.31%, with assets of 710 million yuan. - SWEE HONG LIMITED Preferred Growth lagged by 45.87%, holding 230 million yuan. - SWEE HONG LIMITED Healthy Living Theme underperformed by 39.66%, with 900 million yuan in assets.

Combined, these funds total just 1.84 billion yuan in assets—far below many "billion-yuan" peers—yet face equally steep performance pressures.

Portfolio analysis shows Pang’s funds are heavily concentrated in sectors undergoing prolonged downturns: 1. **Industrial Upgrade** focuses on renewable energy (e.g., LONGi Green Energy, Trina Solar), with top holdings like JA Solar dropping 16.79% recently. 2. **Preferred Growth** targets consumer staples (Kweichow Moutai, Luzhou Laojiao), though most liquor stocks slumped—Moutai fell 7.32%. 3. **Healthy Living Theme** bets on medtech (United Imaging, Mindray), but key stocks declined up to 19.16%.

Pang’s Q3 reports outline his rationale: - **Consumer recovery**: Expects Fed rate cuts to boost sectors like liquor and tourism. - **"Anti-involution" industries**: Prioritizes tech upgrades in solar/wind and green transitions for coal/cement. - **Biomedicine**: Cites policy support and aging demographics as tailwinds.

With 5.53 years’ experience, Pang remains optimistic about market recovery. However, under the new pay rules, his confidence must translate into improved returns—a pressing challenge amid ongoing sector volatility.