CSRC: Fund managers should monitor the deviation of actual fund investments from performance benchmarks and prevent fund style drift.

The China Securities Regulatory Commission has conducted research and drafted the "Guidelines on Performance Comparison Benchmarks for Publicly Offered Securities Investment Funds" and is now seeking public feedback. The draft guidelines stipulate that fund managers should strengthen the stability management of the fund investment style and designate a department independent of the investment management department to monitor the deviation of the actual fund investment from the performance comparison benchmark to prevent style drift of the fund. Fund managers should prudently set differentiated monitoring indicators and relevant thresholds for investment deviation from the performance comparison benchmark based on factors such as product type, investment objective, and investment strategy for different fund products. If warning indicators are triggered, fund managers should adjust within the designated timeframe as per the company's system or submit for review by the investment decision-making committee. The investment decision-making committee should make decisions on whether to exceed the threshold from the perspective of protecting the interests of fund shareholders and strengthen tracking and evaluation of decision implementation. The investment decision-making committee should analyze the fund investment deviation at least quarterly and properly keep analysis reports for reference.