On March 26, Fullgoal Fund announced a reduction in the management and custody fees for its Hong Kong Stock Connect Internet ETF and its feeder fund. The management fee was lowered from 0.5% per annum to 0.15% per annum, and the custody fee decreased from 0.1% per annum to 0.05% per annum, making them the lowest tiers among comparable products. The new comprehensive fee rates took effect on March 27.
According to Wind data, as of March 26, the Hong Kong Stock Connect Internet ETF managed by Fullgoal Fund had reached a scale of 67.53 billion yuan, making it the largest cross-border ETF and the largest single-sector thematic ETF in the market. Public information indicates that the ETF closely tracks the CSI Hong Kong Stock Connect Internet Index, which selects 30 listed companies involved in internet-related businesses from the Hong Kong Stock Connect scope to reflect the overall performance of internet-themed listed securities. The ETF and its feeder fund primarily focus on the Hong Kong stock internet sector, covering sub-sectors such as e-commerce, social media, and medical technology.
Recently, influenced by external factors, the Hong Kong stock market has experienced increased volatility. The fund manager for the Hong Kong Stock Connect Internet ETF, Tian Ximeng, stated that there are currently three positive factors in the Hong Kong stock market. First, profit recovery is anticipated. Signals against "internal competition" have been released, and irrational subsidy wars in the food delivery industry have been halted. This shift is expected to end disorderly competition in the sector, potentially leading to a significant upward revision in overall profit expectations for the industry. Second, advancements in large model technology are imminent, which may lead to a revaluation. Previously, the market had doubts about the AI capabilities of leading internet companies, but this sentiment is expected to reach a turning point in April. Relevant leading companies plan to release major updates to their large models, continuing to invest in core technologies like AI and cloud computing. Substantial breakthroughs in technical capabilities are likely to boost market confidence and drive valuation recovery. Third, risk appetite is recovering. As the most pessimistic phase of geopolitical conflicts gradually passes, external pressures are expected to ease, potentially leading to a global recovery in risk appetite. Overall, assets such as Hong Kong Stock Connect internet stocks are expected to see opportunities for both valuation and performance improvement.
Earlier, on March 24, Fullgoal Fund also reduced the comprehensive fees for six of its index products, including the Central SOE Dividend ETF, the Chip ETF, the Battery ETF, and their corresponding feeder funds. The management fees for these six products were reduced from 0.5% per annum to 0.15% per annum, and the custody fees were lowered from 0.1% per annum to 0.05% per annum. After the adjustment, the management and custody fees for these products are among the lowest for comparable products.
The "Action Plan to Promote High-Quality Development of Public Funds" explicitly requires "steadily reducing the costs for fund investors" and "guiding industry institutions to appropriately lower the management and custody fees for large-scale index funds and money market funds." As the reform of public fund fee rates continues to advance, many public fund institutions are actively reducing the burden on investors. Wind data shows that, as of March 26, over 40 public fund products have lowered their comprehensive fee rates since the beginning of the year.
A product department official from a large public fund institution in North China believes that reducing investment costs helps attract more medium- to long-term capital into the market through public funds. At the same time, the fee reform will incentivize public fund institutions to enhance their comprehensive competitiveness. Companies that prioritize investor interests, possess solid investment capabilities, and maintain good compliance and risk control standards will have a competitive advantage, thereby driving overall quality improvement in the industry.