Recently, the disclosure of 2025 annual reports by China’s mutual fund industry was completed, officially revealing the industry’s profitability for the year. Supported by the recovery of the A-share market, all major categories of mutual funds generated positive returns, with total profits for investors reaching a record high. At the same time, the advantages of leading institutions became increasingly evident. By building a professional, platform-based and multi-strategy investment and research system, GF Fund Management further strengthened its professional investment capabilities and its advantages in equity asset scale, generating more than RMB120 billion in profits for fund holders during the year.

Equity Funds Led Broad-Based Profitability Across the Industry

In 2025, the A-share market recovered overall, with major indices delivering positive performance and market trading activity increasing. Against this backdrop, China’s mutual fund industry delivered strong results. According to Wind data, excluding newly established funds during the year, equity funds recorded an average NAV growth rate of 28.73% in 2025, outperforming the broader market, while a number of funds more than doubled in value.

Driven by the upward trend in equity markets, the overall profits of the mutual fund industry increased substantially. According to TX Investment Consulting, China’s mutual fund industry generated RMB2.61 trillion in profits for investors in 2025, more than double the amount recorded in 2024. The figure also surpassed the level achieved in 2020 and set a new historical record, making 2025 one of the strongest years for fund investor profitability in recent memory.

By product category, all major fund categories were profitable, with equity products serving as the primary contributor. Equity funds and hybrid funds generated profits of RMB1.13 trillion and RMB870 billion respectively, together accounting for approximately 77% of total industry profits. When classified by active and passive strategies, active equity funds and passive index funds contributed broadly comparable levels of profit. In addition, bond funds, money market funds, QDII funds and commodity funds each generated profits exceeding RMB100 billion.

At the fund manager level, among the 161 fund management companies included in the statistics, including securities asset managers licensed to conduct mutual fund business, only four reported overall losses. Fund managers with relatively higher exposure to equity products generally delivered stronger results. Meanwhile, the industry’s concentration continued to increase, reflecting a stronger “Matthew effect.” The ten institutions with the highest aggregate product profits—representing only around 7% of the institutions covered—generated RMB1.43 trillion in profits, accounting for nearly 55% of total industry profits. Only seven fund managers generated annual profits exceeding RMB100 billion, and GF Fund Management was among them.

GF Fund Management Generated More Than RMB120 Billion in Profits for Fund Holders in 2025

According to Wind data, GF Fund Management’s mutual fund products generated a combined RMB120.5 billion in profits for fund holders in 2025, placing the Company firmly among the industry’s leading institutions. With strong investment performance and diversified investment capabilities, the Company delivered substantial returns for investors.

According to data from the China Galaxy Securities Fund Research Center, based on primary share classes only and excluding funds established during the year, 112 GF Fund Management products recorded returns of more than 30%, 45 products returned more than 50%, 12 products returned more than 70%, and three products returned more than 90%. One fund achieved an NAV growth rate of 134.08%. In terms of peer rankings, 123 products ranked within the top one-third of their respective categories, while 90 ranked within the top quartile.

As one of the Company’s traditional areas of strength, GF Fund Management’s active equity team further enhanced the diversity of its investment styles in 2025. Its investment approach became increasingly systematic, professional and disciplined, delivering strong results in both absolute and excess returns. According to Wind data, the Company’s active equity products generated RMB46 billion in profits for investors during the year. Data from Guotai Haitong Securities showed that GF Fund Management’s equity funds generated an excess return of 10.85% in 2025. Through the continuous expansion of fund managers’ investment capability circles, ongoing upgrades to investment strategies and tools, and the development of a diversified and complementary team ecosystem, the Company seeks to provide investors with a better investment experience and stronger outcomes.

In index investing, GF Fund Management leverages the platform support and value discovery capabilities accumulated through its active management business. Based on a deep understanding of industry trends and client needs, the Company responds precisely to evolving market demand and continues to build a diversified, forward-looking product matrix for investors. In 2025, the Company’s index products generated RMB43.2 billion in profits for investors, with 11 individual products each generating more than RMB1 billion in profits. Amid the rapid expansion of the ETF industry, only two fund managers across the market recorded an increase of more than 500,000 ETF investor accounts during the year. Supported by professional investment and research capabilities and in-depth investor engagement, GF Fund Management achieved a net increase of more than 600,000 ETF investor accounts in 2025.

Against a more volatile bond market in 2025, GF Fund Management focused on the demand of different investor groups for stable and prudent investment solutions. The Company actively expanded its range of diversified assets and strategies, enabling it to respond effectively to interest-rate volatility and increasing credit differentiation. In 2025, the Company’s fixed-income funds generated RMB14.1 billion in profits for investors. Over a longer time horizon, data from Guotai Haitong Securities showed that the Company’s fixed-income funds recorded an absolute return of 35.15% and an excess return of 14.75% over the past seven years.

Industry professionals noted that the strong profitability of China’s mutual fund industry in 2025 reflected not only the broad recovery of the A-share market and the revaluation of equity assets, but also the combined impact of the industry’s continued transition toward high-quality development and the systematic upgrading of professional capabilities among asset managers. Institutions across the industry are currently strengthening their investment and research foundations and improving the quality of product supply.

GF Fund Management is one such example. In recent years, the Company has continuously advanced initiatives including organizational and institutional optimization, system and platform upgrades, and talent pipeline development, with the objective of building a modern investment and research system that is professional, platform-based and multi-strategy.

On a unified investment platform, professional investment talent is able to leverage individual strengths while evolving collaboratively. Integrated investment and research collaboration simultaneously enhances the depth and efficiency of research. Platform-based empowerment broadens the boundaries of individual and team capabilities, while a disciplined framework for managing portfolio deviations strikes a balance between investment flexibility and style consistency, providing solid support for sustainable performance.

A multi-strategy approach, meanwhile, broadens the sources of investment returns and better addresses clients’ allocation needs across different market environments. This system not only ensures diversity in investment capabilities, but also reinforces the stability of the organization’s overall capabilities. It supports GF Fund Management in continuously developing strong and sustainable Alpha-generation capabilities and in delivering better investment returns and investment experiences for investors.