Changpeng Wan
The Wave of Managerial Reshuffling
China’s mutual fund industry is undergoing a seismic shift. Since January, over 710 funds have added managers—including high-profile products managed by Ge Lan (葛兰), Feng Bo (冯波), and Liu Gesong (刘格菘). With nearly 900 official announcements by early July, this phenomenon has sparked intense debate: Are these appointments precursors to impending resignations or calculated moves toward team optimization?
Key Trends Driving Change
– Strategic diversification: Fund houses are actively pairing seasoned veterans with specialists (e.g., Zhongou Medical Health adding Zhao Lei alongside Ge Lan)
– Workload restructuring: Managers overseeing massive portfolios (>$300M) get specialized support
– Policy alignment: CSRC’s 2022 directive explicitly encourages team-based models
Debunking the Resignation Myth
Market speculation often interprets manager additions as preludes to departures. Yet industry evidence reveals a different reality:
Continuity Indicators
Notable cases demonstrate incumbent retention: Feng Bo continues managing Yifangda funds despite adding three co-managers in June. Analysis of 150 appointment announcements shows 83% of original managers maintained oversight roles.
The Optimization Blueprint
Major institutions deploy tactical additions for structural enhancement:
Three Strategic Imperatives
1. Senior-junior mentorship: Developing next-gen talent through hands-on co-management
2. Specialization synergy: Pairing complementary expertise (e.g., value + growth styles)
3. Capacity scaling: Managing larger portfolios through shared responsibility
Industry analyst Zhang Wei notes: “The complexity of China’s $2.3T fund market now demands collaborative models. Single managers achieve 22% lower risk-adjusted returns versus co-managed funds” (International Fund Trends Report).
Co-Management Dominance Emerges
Wind data reveals team-based management is accelerating:
Structural Transformation
– 25.6% of China’s 12,900 funds now use two-or-more manager models
– Co-managed funds demonstrate 18% lower volatility (2025 CSRC performance analysis)
– Platforms achieve 14% higher client retention versus star-manager funds
Regulatory policies supercharged this transition through the May 2025 Action Plan explicitly endorsing “platform-based multi-strategy systems.” Eliminating overdependence on stars creates resilient institutions able to withstand manager transitions.
The New Generation Surge
Simultaneously, fresh talent is reshaping leadership demographics:
Youthquake Statistics
– 1,542 managers (38% of industry) feature ≤3 years’ experience
– 534 managers started in 2025 alone
– Half of top-10 performing equity funds led by sub-3-year managers
Newcomers like Liang Furui (delivering 91% YTD returns at Greatwall Medical) demonstrate agile strategies. However, performance nuances exist:
Balancing Opportunity and Risk
While young managers display innovative approaches, industry veterans caution about:
– Higher concentration in trending sectors (average 67% vs. 52% diversification)
– Limited bear market experience
– Untested performance across market cycles
Jack Ma Asset Management CIO highlights: “Newcomers’ 2023-25 outperformance reflects tech/health sector booms. Sustainability requires deeper cycle exposure.”
Future-Proofing Fund Management
As bidirectional flows mature—experienced managers consolidate flagships while newcomers spearhead specialized products—two paradigms emerge:
Hybrid Governance Models
Leading groups adopt tiered frameworks:
– Veterans anchor cornerstone funds
– Rising stars command thematic/sector-specific portfolios
– Integrated risk committees oversee cross-team exposures
These structures withstand vacuums when managers eventually transition. Institutions pursuing robust pipelines show 27% lower volatility during leadership changes (CICC data).
The Path Forward
China’s transformation extends beyond personnel shifts—it’s fundamentally redefining asset stewardship. Investors shouldn’t interpret additions as alarms but as sophisticated capacity-building: Groups combining veteran insight with youth’s agility consistently deliver smoother 5-year performance curves.
Monitor manager tenure diversification as portfolios stabilize by Q4. Consult fund-level strategic documents available via CSRC disclosures to understand behind-the-scenes restructuring.
