The era of "performance-driven" compensation has arrived, with major reforms in public fund performance evaluation after three years. Nearly a thousand fund managers face potential pay cuts.

Recently, the "Guidelines for Performance Assessment Management of Fund Management Companies (Draft for Comments)" sparked heated discussions in the industry. The guidelines impose restrictions on dividend payouts to shareholders, requiring fund companies to prudently determine payout frequency and ratios based on long-term fund performance and investor returns. Companies with poor fund performance or significant investor losses over the past three years should reduce payout frequency and ratios.

According to financial reports from Orient Securities and its wholly-owned subsidiary, Shanghai Orient Securities Asset Management (Orient AM), Orient AM reported revenue of 1.438 billion yuan and net profit of 333 million yuan in 2024. Over the past decade (2015–2024), Orient AM accumulated a total net profit of 6.845 billion yuan, distributing 3.173 billion yuan in dividends to shareholders.

Notably, Orient AM maintained high payout ratios of 96.59% and 86.63% in 2022 and 2023, respectively, ranking among the highest for large and mid-sized fund companies. However, during the same period, its funds incurred losses of 34 billion yuan in 2022 and 14.2 billion yuan in 2023 for investors—totaling 48 billion yuan over two years—while shareholders continued to receive substantial dividends.

Performance-wise, Wind data shows that from 2022 to 2024, 41 out of 76 primary funds under Orient AM (53%) posted losses, 50 (65%) underperformed their benchmarks, and 29 (38%) lagged by more than 10%. Cumulatively, these funds lost investors 42.6 billion yuan over three years. From December 1, 2022, to November 30, 2025, 7 out of 83 funds (8%) recorded losses, 34 (40%) underperformed benchmarks, and 11 (13%) trailed by over 10%.

Market analysts highlight concerns: excessive payout ratios hinder capital accumulation and risk management, weakening innovation and expansion capabilities. Shareholders fail to act as long-term, patient capital, and high dividends during market downturns worsen investor experience.