"Chasing Gains Actively" "Disguised Concealment" Why Are These Thematic Funds "Not Matching the Description"?

Shortly after the start of 2026, complaints about “style drift” in funds have frequently appeared on major sales platforms. The industry issue of “style drift” has existed for a long time, and some funds driven by interests are becoming more and more intense. Journalists tracked and found that by the end of 2025, among the 13 funds identified as “style drift” by third-party fund evaluation agency Ji’an Jinxin in Q2 2025, 6 funds not only failed to correct their drift, but some even showed a new trend of “group AI” in Q4, forming a “second drift.”

Many industry insiders believe that under the strong regulatory background of the China Securities Regulatory Commission’s release of the “Guidelines for Performance Benchmarks of Publicly Offered Securities Investment Funds” which took effect on March 1, the longstanding issues in the industry will gradually be corrected, promoting a return to the essence of fiduciary duty.

“Second Drift” Puzzle: From “Passive Defense” to “Active Chase”

At the beginning of 2026, “style drift” seems to have become a frequently mentioned complaint about some funds. Huabao Nasdaq Select, for example, drew strong dissatisfaction from investors for heavily holding NIO and missing out on the US stock rally; even more rarely, on January 13, the Shanghai Hongkou Court held a hearing in a case where investors simultaneously sued the fund company and fund managers. The involved fund, Guotou UBS Jinbao, shifted from heavy holdings in new energy to AI tech stocks, raising suspicion of serious style drift.

According to Ji’an Jinxin’s previous “2025 Q2 Public Fund Rating Report,” 13 funds were identified as having style drift issues. Journalists tracked these 13 funds and found that by the end of 2025, 6 still exhibited style drift, with some even experiencing a “second drift.”

The China Post Health Entertainment Flexible Allocation Hybrid Fund is a typical example of “second drift.” According to Ji’an Jinxin’s Q2 2025 rating, the fund was already identified as style drift due to heavy holdings in AI computing hardware; however, the quarterly report showed it not only failed to revert to health and entertainment themes but continued to heavily hold stocks like Tianci Materials, Industrial Fuxin, and Huasheng Lithium, which are popular in AI hardware and new energy markets, with a position ratio as high as 37.8%.

Worse still, fund manager Gong Zheng explicitly stated in the quarterly report, “Considering that the computing power and lithium battery sectors, which have large holdings, saw significant gains in 2025, we will appropriately control positions in Q1 2026 and wait for new opportunities to add.”

A relevant person from a Shanghai fund evaluation agency said that early “style drift” mainly involved heavy holdings in low-valuation sectors like banking and electricity, which was a defensive deviation. Now, the collective shift toward AI computing, new energy, and innovative drugs is essentially another form of thematic betrayal. The danger of this “second drift” is that fund managers are not unaware of their drift but knowingly choose to “go along with it” for short-term performance rankings.

Data shows that the China Post Health Entertainment Flexible Allocation Hybrid Fund achieved an 83.52% return in 2025, ranking high among peers. “Although some drifting funds gained considerable profits from heavy AI holdings in 2025, these gains are based on breach of the contract. Once market styles switch, drifting funds will face a dilemma of double losses: missing the rebound of the original theme sectors and standing at high positions in hot tracks,” the person added.

BaoYing Modern Service Industry Hybrid Fund has demonstrated an advanced version of “second drift.” The fund’s contract clearly requires focusing on productive and residential services, but in Q2 2025, it was heavily invested in the pharmaceutical sector. The quarterly report showed it further concentrated holdings in Cinda Biotech, Kelun Botech, and Hengrui Medicine, with a position ratio as high as 65%. Fund manager Yao Yi also stated in the quarterly report, “Although the innovative drug sector continued to fluctuate in Q4, we will continue to strategically allocate to this sector.”

The “second drift” of the Jiashi Green Theme Stock Initiating Fund is somewhat controversial. Market understanding suggests that this fund should focus on environmental protection, low carbon, and new energy industries. However, Q2 2025 data showed it was heavily invested in chip stocks, focusing on the semiconductor supply chain, with a holding ratio of 71%. The Q4 2025 report indicated that fund manager Cai Chengfeng still held positions in Lanqi Technology, GigaDevice, and other semiconductor stocks, with holdings increasing to 82.5%.

A related Jiashi fund official said that there are differing opinions on whether Jiashi Green Theme has drifted, mainly because the market’s definition of “green” varies. The fund’s contract clearly defines “green themes” as focusing on sectors benefiting from China’s economic restructuring and industrial upgrading under the new development concepts of innovation, coordination, green, openness, and sharing. It emphasizes high-quality companies with core competitive advantages and sustainable growth potential.

“The fund’s investment scope mainly includes two areas: one is green low-carbon transformation, including new energy, new materials, smart vehicles, energy conservation and environmental protection, industrial internet, IoT, biomedicine; the other is green low-carbon technology R&D and application, including new-generation information technology, artificial intelligence, biotechnology, high-end equipment, and other sectors integrated with green low-carbon industries.” The person also said that according to Shenwan Hongyuan’s industry classification, the listed companies related to the green theme mainly distribute across communications, computers, electronics, machinery, power equipment, transportation, non-ferrous metals, basic chemicals, utilities, environmental protection, automotive, and biomedicine.

Varieties of Drift: From “Deep Drift” to “Invisible Disguise”

Besides the above “second drift” cases, three other funds show different aspects of style drift, forming a chaotic picture of “mismatch” between claims and reality.

Taxin Modern Service Industry Hybrid is a typical example of “deep drift.” Its name clearly indicates a focus on commerce, leisure services, and transportation, but Q2 2025 data showed it was heavily invested in lithium mining stocks; the quarterly report revealed its top nine holdings still included Tianci Materials, Yahua Group, and Tianhua New Energy, all in the new energy supply chain, which is completely inconsistent with the modern service industry theme.

Beixin Ruifeng’s Extensional Growth Theme Flexible Allocation faces a dual dilemma of “misleading name” and impending liquidation. Its name emphasizes “extensional growth,” which should focus on M&A and expansion, but Q2 2025 data showed heavy holdings in power stocks; the quarterly report indicated its top ten holdings still included Guiguan Power, Huaneng Hydropower, Zijin Mining, etc. Currently, the fund’s size is only 0.16 billion yuan, on the verge of liquidation, with style drift and risk of closure coexisting.

More covert is Jinxin Zhihui China 2025’s “invisible drift.” In Q2 2025, it was identified as style drift for heavy holdings in bank stocks; the quarterly report shows that although it added two semiconductor stocks, its top eight holdings remain concentrated in banking and insurance sectors, including ICBC, Industrial Bank, with a combined holding ratio of 42.85%. Fund manager Tan Jiajun stated in the quarterly report that the allocation was in “financial services intelligence,” but in essence, it remains a “repackaging” of traditional bank stocks.

Notably, not all funds choose to “go along with it.” CCB Innovation Leading Hybrid, despite heavy holdings in banks and power stocks in Q2 2025 being identified as style drift, in the quarterly report, its top ten holdings have been largely adjusted to tech growth stocks like CATL, InnoSun, and Tianci Materials, completing correction. This kind of correction contrasts sharply with “second drift” funds.

Strong regulatory “tightening”: New regulations and industry reshaping

Amid chaos, regulators have taken strong action. The governance of “style drift” funds has entered a phase of “strict constraints.”

On March 1, 2026, the China Securities Regulatory Commission officially implemented the “Guidelines for Performance Benchmarks of Publicly Offered Securities Investment Funds.” Seen as a “rebuilding of industry investment culture,” this document marks the industry’s formal departure from the era of “light benchmarks and heavy rankings.”

It requires that the investment directions, strategies, and risk-return features specified in fund contracts must be “three-matched” with the benchmark; for active equity funds with long-term performance significantly below the benchmark, the fund managers’ performance-based pay should be substantially reduced.

For existing funds, a 12-month transition period has been set for rectification. This means that the “style drift” products, including the six funds mentioned earlier, must correct their drift before March 2027, or face stricter regulatory measures.

Many industry insiders say that when “health and entertainment” funds can openly hold AI computing stocks, it not only damages individual investors’ rights but also undermines the fundamental trust of the public fund industry in “trusteeship and client management.” With the implementation of the new performance benchmark rules, the public fund industry is undergoing a profound shift from “ranking battles” to “contract adherence.” This is not only the best protection for financial consumers’ rights but also the only way for high-quality industry development. In the future, under the “tightening” of strong regulation, fund managers attempting to chase short-term gains through “second drift” will eventually realize that compliance is the longest shortcut, and the spirit of contracts is the greatest moat.