Manulife Fund Management announced on June 7 a RMB 10 million self-investment in its Manulife Vision Pilot Mixed Fund (Code: 024461), signaling strong conviction in China’s capital markets and its own active management capabilities. As the sole foreign manager among China’s first batch of innovative floating-fee funds, this move highlights both long-term optimism about Chinese markets and commitment to aligning interests with investors.
Global Expertise Meets Local Innovation
Leveraging parent company Manulife Financial Group’s century of global asset management experience, the firm brings international floating-fee fund expertise to China’s evolving fee structure reforms. “Floating-fee products represent a crucial innovation in China’s fund industry transformation toward high-quality development,” a Manulife spokesperson explained. “The fee structure deliberately favors investors – potential upside for managers is capped at +0.3% while downside reaches -0.6% versus standard fees.”
Industry-Wide Transformation
The self-investment coincides with broader shifts in China’s fund industry:
- Performance focus: Floating fees tie compensation to results rather than assets under management
- Long-term alignment: Structures encourage extended investor horizons and manager commitment
- Risk-sharing: Managers assume greater responsibility for underperformance
Tianxiang Investment data confirms Manulife’s strong track record, awarding its active equity/mixed funds the highest AAAAA ratings for three-year performance through Q1 2025. The Vision Pilot fund combines global research resources with 22 years of local market insights from Manulife’s China team.
Strategic Implications
This development reflects multiple converging trends:
- Foreign managers deepening China commitments through product innovation
- Regulatory reforms shifting industry incentives toward sustainable returns
- Investor demand for structures that better align manager compensation with outcomes
As China’s asset management industry matures, floating-fee products and accompanying manager investments demonstrate how global best practices are adapting to local market conditions while addressing longstanding concerns about fee structures and performance accountability.
Related topics:
