As 2025 draws to a close, the first batch of 26 floating fee funds established this year have begun submitting interim performance reports. Despite operating for less than a year, their results already show significant divergence. Among them, GF Value Steady Growth Fund A has drawn particular attention.
Wind data shows that as of December 16, the fund has posted a year-to-date return of -8.32%, ranking last among the 26 floating fee funds. Short-term performance has been equally concerning, with one-month and three-month returns at -5.34% and -8.49% respectively, reflecting a clear downward trend.
The sustained underperformance has triggered massive investor withdrawals. By September 30, 2025, the fund's net assets had plunged from the initial 548 million yuan to 432 million yuan—a 21.26% decline—with 107 million units redeemed and zero new subscriptions, indicating eroding investor confidence.
The root cause lies in the fund's severe mismatch with this year's market trends. Its top ten holdings were heavily concentrated in baijiu stocks like Luzhou Laojiao, Shanxi Fenjiu, Wuliangye, Yanghe Brewery, and Kweichow Moutai (totaling nearly 19% of the portfolio), alongside underperforming software firms such as Longshine Technology and Sinodata. These stocks have seen steep declines recently—Longshine dropped 32.03%, Sinodata fell 20.15%, while the baijiu trio each lost over 10% in three months. Amid 2025's tech-driven market rally, the fund's adherence to traditional consumer and value sectors has dragged down performance.
Fund manager Wang Mingxu, with over seven years of experience managing eight funds worth 8.26 billion yuan across equity and balanced hybrid categories, has seen most of his products lag behind benchmarks and peers. Notably, GF Value Steady Growth A/C and GF Value Select A/C all fell over 8.5% in three months, while GF Rui Ming Two-Year Holding A/C lost over 15% annually, ranking near the bottom of its category. Other products like GF Value Advantage and GF Domestic Demand Growth A/C posted 17%-19% annual losses, placing them in the worst 1% percentile.
Wang's investment philosophy centers on "consumer + financial" sectors with bottom-up stock picking and balanced allocation. However, 2025's structural market favoring AI and advanced manufacturing has rendered his value-oriented approach ineffective, leaving multiple funds at the bottom of performance rankings.
Short-term, GF Value Steady Growth A is trapped in a vicious cycle of poor performance triggering redemptions. Long-term, Wang's ability to tactically adapt his value-focused strategy while revitalizing his traditional expertise will determine whether he can reverse this downturn.
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