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(Original title: Wells Fargo Fund: Poaching against the trend is not enough to change the poor performance)

"Jinzhengyan" Southern Capital Center-Financial Report Interpretation Bo Nan/Author Nanzhi/Risk Control

Mercury Retrograde Series 1

Against the backdrop of high-quality development, the newNine Articles"It is clear that we will vigorously promote the entry of medium- and long-term funds into the market and continue to strengthen long-term investment forces. As early as 2022,fundThe requirements for corporate performance appraisal and remuneration management have been further clarified, and wrong arguments such as strictly prohibiting short-term incentives and excessive incentives and resolutely correcting materialism have been raised to a higher level. Recently, rumors such as "salary caps" and "recovery of excess remuneration" for fund managers in the public fund industry have changed several times. Whether the remuneration of public fund managers can be consistent with the long-term interests of investors has attracted market attention.

In recent years, Wells Fargo Fund Management Co., Ltd. (hereinafter referred to as "Wells Fargo Fund") has frequently "poached" fund managers. During the tenure of the relevant fund managers, many fund performances were "poor", but management fees ranging from several million to tens of millions of yuan were collected, and this situation was more obvious in its equity funds. Among them, before the 10 billion fund manager Fan Yan joined Wells Fargo Fund, the heavily weighted stocks of many products she managed were highly similar and the yields were "all losses". Faced with the dilemma of "funds making money but investors not making money", Wells Fargo Fund's frequent "poaching" may not be able to solve the problem.

1. Market rumors that fund managers’ salaries were limited, but Fan Yan from Yuanxin Yongfeng Fund was “poached” against the trend

Under the requirements of high-quality development, the public fund industry has put more emphasis on the rectification of bad habits such as money worship, extravagance, and "showing off wealth", as well as wrong arguments such as "exceptionism" and "eliteism". In 2023 alone, the salary ratio of employees of 51 listed securities companies declined, and rumors of "salary caps for public fund managers" have been heard from time to time.

In April 2024, Fan Yan, a billionaire fund manager, joined the Fullgoal Fund. Fan Yan once managed more than one-third of the fund assets under Yuanxin Yongfeng Fund, but seven of the funds under her name had a high degree of duplication of heavily weighted stocks, and the yield rate may be "one loss for all".

1.1 Salary cuts in the financial industry are inevitable under the high-quality development policy. Salary cuts by securities firms have already appeared in the market. It is rumored that public fund managers will be reduced in salary.

In April 2022, the China Securities Regulatory Commission issued the "Opinions on Accelerating the High-Quality Development of the Public Fund Industry", which mentioned that fund managers should be urged to strictly implement the deferred compensation system and strictly prohibit short-term incentives and excessive incentives. The "Guidelines on Performance Appraisal and Compensation Management of Fund Management Companies" issued by the China Securities Association in June 2022 clarified the deferred payment system for fund companies' performance compensation, requiring the deferred payment period to be no less than 3 years, the deferred payment speed should not be faster than the equal distribution ratio, and the deferred payment amount for key positions such as senior management personnel and fund managers should not be less than 40% in principle.

This year, on March 15, 2024, the China Securities Regulatory Commission issued the "Opinions on Strengthening the Supervision of Securities Companies and Public Funds and Accelerating the Construction of First-Class Investment Banks and Investment Institutions (Trial)" (hereinafter referred to as the "Opinions") and clearly pointed out in the document that it is necessary to carry out in-depth construction of financial culture with Chinese characteristics. Urge industry institutions and practitioners to vigorously promote and practice the financial culture with Chinese characteristics of "honesty and trustworthiness, not crossing the bottom line; profiting with justice, not profiteering; being prudent and prudent, not eager for quick success and instant benefits; adhering to the right path and innovating, not deviating from reality to virtuality; complying with laws and regulations, and not doing anything wrong." Resolutely correct the bad habits of money worship, extravagance, quick success and instant benefits, and "showing off wealth", and resolutely break the wrong arguments such as "exceptionalism", "eliteism" and "specialism".

Under the requirements of high-quality development policies, salary cuts in the financial industry may have become an industry trend. Among them, changes in the salaries of some securities company employees have surfaced, and the news of salary cuts for fund managers of public funds has also received widespread attention from the market.

Data shows that in 2023, among the 51 listed securities firms, the average salary of employees at more than half of the firms decreased year-on-year.

In terms of public funds, rumors such as "salary cap for public fund managers" and "salary cap for public fund managers" have changed several times, and the circulating versions of the "salary cap for fund managers" include 5 million yuan, 2 million yuan, 1.2 million yuan and other different versions.

From the regulatory perspective, the "Opinion" issued by the China Securities Regulatory Commission on March 15, 2024 pointed out that in terms of optimizing the development of the industry ecology, it is necessary to strengthen the management of practitioners and cooperate with relevant competent departments to continuously improve the salary management system of industry institutions; the new "National Nine Articles" issued on April 12 pointed out that it is necessary to steadily reduce the comprehensive fee rate of the public fund industry and study and standardize the fund manager salary system. Revise the classification evaluation system for fund managers and urge the establishment of rational investment, value investment, and long-term investment concepts.

Against the backdrop of market rumors that fund managers’ salaries are capped, China Asset Management may “go against the trend” and poach fund managers.

1.2 Billion Fund Manager Fan Yan Resigned from Yuanxin Yongfeng Fund, Maybe She Was Poached by Wells Fargo Fund

On April 3, 2024, Fan Yan, a fund manager under Yuanxin Yongfeng Fund Management Co., Ltd. (hereinafter referred to as "Yuanxin Yongfeng Fund"), no longer served as the fund manager of the eight funds under her name at that time, and the total size of these eight funds accounted for more than one-third of the total size of all funds under Yuanxin Yongfeng Fund.

Fan Yan’s next stop after leaving Yuanxin Yongfeng Fund may be China Asset Management.

According to Oriental Wealth Choice data, Fan Yan resigned from eight funds, including Yuanxin Yongfeng Youjia Life, Yuanxin Yongfeng Youxiang Life, and Yuanxin Yongfeng Youyue Life, on April 3, 2024. Among them, there are two ordinary stock funds, three flexible allocation funds, two equity-oriented mixed funds, and one mixed bond secondary fund.

According to calculations, the latest combined size of the above eight funds during Fan Yan's tenure is 12.87 billion yuan. As of the end of the first quarter of 2024, the combined size of all funds under Yuanxin Yongfeng Fund is about 35.6 billion yuan.

In other words, the combined size of the eight funds that Fan Yan left on April 3, 2024 accounted for approximately 36.15% of the total size of all funds under Yuanxin Yongfeng Fund.

According to the information disclosed on the website of the Asset Management Association of China, as of the query date July 29, 2024, the fund practitioner named "Fan Yan" belonged to China Asset Management.

In other words, Fan Yan, who managed more than 36% of the fund assets under Yuanxin Yongfeng Fund in the first quarter of 2024, may have joined China Asset Management.

1.3 Fan Yan once managed 8 funds of Yuanxin Yongfeng Fund. Before leaving, the heavy holdings of 6 products were highly overlapping.

Judging from the funds that Fan Yan has managed, although their scale accounts for more than one-third of the total size of all funds under Yuanxin Yongfeng Fund, the performance of 7 out of the 8 funds was not impressive before Fan Yan left.

According to Oriental Wealth Choice data, as of April 3, 2024, before leaving, the eight funds Fan Yan worked for were Yuanxin Yongfeng Enhanced Income A, Yuanxin Yongfeng Xingnuo, Yuanxin Yongfeng Juyou A, Yuanxin Yongfeng Xingyan A, Yuanxin Yongfeng Zhiyou A, Yuanxin Yongfeng Youyue Life, Yuanxin Yongfeng Youxiang Life, and Yuanxin Yongfeng Youjia Life.

It is worth noting that, except for Yuanxin Yongfeng Enhanced Income A, the other seven funds, namely Yuanxin Yongfeng Xingnuo, Yuanxin Yongfeng Juyou A, Yuanxin Yongfeng Xingyan A, Yuanxin Yongfeng Zhiyou A, Yuanxin Yongfeng Youyue Life, Yuanxin Yongfeng Youxiang Life and Yuanxin Yongfeng Youjia Life, all achieved negative returns in the year before Fan Yan's departure (April 3, 2023 to April 2, 2024), at -9.74%, -9.4%, -10.94%, -9.26%, -8.42%, -9.81% and -9.36% respectively.

It is not difficult to see that the eight funds that Fan Yan left on April 3, 2024, all achieved a rate of return lower than -8% in the year before Fan Yan left. It is worth noting that among these eight funds, six had large-scale duplication of shareholdings before Fan Yan left.

According to Oriental Wealth Choice data, it has been calculated that among the eight funds that Fan Yan resigned from on April 3, 2024, six of the funds, namely Yuanxin Yongfeng Xingnuo, Yuanxin Yongfeng Juyou A, Yuanxin Yongfeng Zhiyou A, Yuanxin Yongfeng Youyue Life, Yuanxin Yongfeng Youxiang Life, and Yuanxin Yongfeng Youjia Life, had six of the same heavy holdings in the first quarter of 2024. These six funds all held CATL, North Huachuang, AVIC Optronics, Lanqi Technology, Siyuan Electric, and Haier Smart Home as their heavy holdings.

In addition, the fifth largest holdings of Yuanxin Yongfeng Xingnuo, Yuanxin Yongfeng Juyou A, Yuanxin Yongfeng Zhiyou A, Yuanxin Yongfeng Youxiang Life, and Yuanxin Yongfeng Youjia Life are all Kweichow Moutai; Yuanxin Yongfeng Xingnuo, Yuanxin Yongfeng Juyou A, Yuanxin Yongfeng Youyue Life, Yuanxin Yongfeng Youxiang Life, and Yuanxin Yongfeng Youjia Life all hold Jiuli Special Materials.

In other words, Fan Yan, who was "poached" by China Asset Management, had previously managed products under Yuanxin Yongfeng Fund. The heavily-weighted stocks of many funds were largely identical, and the yields were "all-inclusive" when one loss occurred.

2. Frequent poaching of experienced equity fund managers, who receive tens of millions of management fees despite poor performance

For Wells Fargo Fund, "the fund makes money but investors do not make money" may still be the dilemma it faces after "poaching" many fund managers.

From 2021 to 2024, many fund managers, including Fan Yan, Bai Bingyang, Xie Jiale, Zhang Hong, Li Shiwei, and Dong Zhiguo, "turned around" and joined Wells Fargo Fund. However, it is worth noting that after joining Wells Fargo Fund, many of the above fund managers still had negative returns, poor performance, huge losses and huge management fees.

2.1Fullgo Fund may have frequently “poached” talents, Bai Bingyang, Xie Jiale, Zhang Hong, Li Shiwei, Dong Zhiguo, Zhang Fusheng and others have “jumped ship” one after another

In addition to Fan Yan, there are more fund managers who have been "poached" by China Asset Management since 2022.

According to the available data from Oriental Wealth Choice as of June 19, 2024, according to incomplete statistics, from the beginning of 2021 to 2024 (data as of June 19, 2024), the fund managers who joined China Asset Management include Bai Bingyang, Xie Jiale, Zhang Hong, Li Shiwei, Dong Zhiguo, Zhang Fusheng, etc.

Bai Bingyang, a master's student, joined BOCI Securities in February 2012. He was a fund manager in the fund management department and the sponsor of China Red No. 1 and Fund Bao. From 2005 to 2009, Bai Bingyang worked in the Big Four international accounting firms, engaged in the audit of listed companies in the domestic and foreign markets, and served as a senior auditor. From 2009 to 2012, Bai Bingyang worked in the Shanghai Research Department of Taiwan Quanta Securities as an industry researcher. From December 25, 2023, Bai Bingyang will serve as the fund manager of the Fuguo Insight Value Equity Securities Investment Fund.

Xie Jiale, Master, was a researcher at the Research Institute of Huatai Securities Co., Ltd. In June 2014, Xie Jiale joined Dacheng Fund Management Co., Ltd. and served as a researcher and fund manager in the research department. From January 30, 2024, Xie Jiale served as the fund manager of the Fuguo Long-term Growth Hybrid Securities Investment Fund.

Zhang Hong, a master of economics from Fudan University, has served as a researcher at Huaan Fund Management Co., Ltd., a researcher and fund manager at SDIC UBS Fund Management Co., Ltd., a partner at Shanghai Fuming Asset Management Co., Ltd., a senior investment manager at Taiping Asset Management Co., Ltd., and deputy director of equity investment at CITIC Prudential Fund Management Co., Ltd. In April 2024, Zhang Hong joined Wells Fargo Fund Management Co., Ltd. and is currently the director of the equity account of Wells Fargo Fund Management Co., Ltd.InvestmentA senior equity investment manager, he also serves as a senior equity fund manager at Wells Fargo Funds.

Li Shiwei, a master's student, served as a trading assistant at Tianfeng Securities Co., Ltd. (hereinafter referred to as "TF Securities") from July 2016 to April 2018, and as an assistant investment manager at China Merchants Fund Management Co., Ltd. (hereinafter referred to as "China Merchants Fund") from April 2018 to March 2023. In March 2023, Li Shiwei joined Fullgoal Fund Management and has served as an equity investment manager since September 2023. He is currently the equity investment manager of the Pension Investment Department and concurrently the equity fund manager.

Dong Zhiguo, a master's student, served as a fund manager and industry researcher in the investment department of Qianhai Kaiyuan Fund Management Co., Ltd. from July 2015 to August 2022. In August 2022, Dong Zhiguo joined Wells Fargo Fund Management and is currently the fund manager of Wells Fargo National Security Theme Hybrid Securities Investment Fund.

Zhang Fusheng, a bachelor of finance from Shanghai Jiao Tong University, has worked as a senior tax consultant at Deloitte Touche Tohmatsu, an analyst at China International Capital Corporation, an investment research manager at Beijing Gaohua Securities Co., Ltd., an industry expert, assistant fund manager, and equity fund manager at Morgan Fund Management Co., Ltd. In November 2021, Zhang Fusheng joined Wells Fargo Fund Management and is currently the fund manager of Wells Fargo Value Growth Hybrid Securities Investment Fund and other funds.

Liu Xingwang, a master of management from Fudan University, has worked inShenyin WanguoLiu Xingwang has been engaged in fixed income research and investment work at Guotou UBS Fund Management Co., Ltd., Huabao Xingye Fund Management Co., Ltd., and Taixin Fund Management Co., Ltd. In November 2012, Liu Xingwang joined Guotou UBS Fund Management Co., Ltd. and served as a fund manager; he was an assistant to the fixed income department of Huabao Xingye Fund Management Co., Ltd.; deputy general manager of the asset management department of Guolian Securities and director of fixed income business; investment manager, fixed income director, and fund manager of Changan Fund Management Co., Ltd. In November 2021, Liu Xingwang joined Fullgoal Fund Management Co., Ltd. and served as a fixed income investment manager in the fixed income investment department. He has been a fund manager since July 2022.

It is not difficult to see that from 2021 to 2024, many fund managers from other fund companies "jumped ship" to China Asset Management.

2.2 Most of the poached managers were equity fund managers, and most of the products they worked for had poor performance

It is difficult for investors to find out whether a fund manager's "job-hopping" to join another fund company is a voluntary choice or a "poaching". However, the performance of the funds managed by fund managers who joined Wells Fargo Fund Management in recent years before and after their "job-hopping" may not be impressive.

In addition to Fan Yan, many fund managers who joined China Asset Management are mostly fund managers with equity experience. The performance of the funds under the names of some fund managers showed "two faces" before and after the job-hopping; and the performance of the funds under the names of some fund managers may have been "poor" before the job-hopping.

Among them, Zhang Fusheng, who joined China Asset Management in November 2021, showed "two faces" in the performance of the funds under his name before and after his "job hopping".

According to Oriental Wealth Choice data, Zhang Fusheng served as the fund manager of Morgan Transformation Power Hybrid A and Morgan Power Select Hybrid A from March 2, 2018 to October 28, 2021 and from January 29, 2019 to October 28, 2021. The returns of the two funds during Zhang Fusheng's tenure were 99.73% and 293.28%, respectively.

As of July 29, 2024, the query date, Zhang Fusheng managed a total of 4 products under the Fuguo Fund, namely Fuguo Carbon Neutral Hybrid A, Fuguo Auto Smart Hybrid A, Fuguo Clean Energy Industry Flexible Allocation Hybrid A, and Fuguo Value Growth Hybrid A. The returns of the above 4 equity funds under Fuguo Fund during Zhang Fusheng's tenure were -23.69%, -36.99%, -39.07%, and -31.82% respectively.

In addition, Dong Zhiguo, who left Qianhai Kaiyuan Fund and joined China Asset Management in 2022, may only manage an equity-oriented mixed fund.

Data shows that on February 28, 2023, Dong Zhiguo began to manage the Fuguo National Security Theme Hybrid A together with Zhang Xufeng. On March 3, 2023, Zhang Xufeng no longer served as the fund manager of the Fuguo National Security Theme Hybrid A, and Dong Zhiguo began to manage the fund alone.

According to Oriental Wealth Choice data, since Dong Zhiguo took office as fund manager on February 28, 2023, as of the query date July 29, 2024, the increase or decrease of the Fuwu National Security Theme Mixed A Fund was -29.67%. During the same period, the increase of the Fuwu National Security Theme Mixed A benchmark was -13.16%.

In other words, since Dong Zhiguo became the fund manager of Fuwu Fund, the yield of Fuwu National Security Theme Mixed A has been negative, and the increase is lower than the benchmark.

Li Shiwei, who once worked at Tianfeng Securities and China Merchants Fund, has served as the fund manager of the China Asset Management Co., Ltd.'s China Asset Management New Trend Flexible Allocation Mixed A since October 31, 2023. The unit net value of this fund is already lower than the face value.

According to Oriental Wealth Choice data, as of the query date July 29, 2024, the yield of the Fuguo New Trend Flexible Allocation Mixed A during Li Shiwei's tenure was -21.89%, and the net value of the fund unit was lower than the face value of 1 yuan, at 0.7062 yuan.

In addition, Xie Jiale and Zhang Hong, who only served as fund managers of funds under China Asset Management in 2024, saw the funds they managed experience a decrease in net asset value and a yield that underperformed the benchmark.

According to the data from Oriental Wealth Choice, Xie Jiale started to manage Fuguo Long-term Growth Mixed Fund A on January 30, 2024. As of the end of the first quarter of 2024, the net asset value of Fuguo Long-term Growth Mixed Fund A was 3.853 billion yuan, a decrease of 389 million yuan from 4.242 billion yuan at the end of the fourth quarter of 2023, and a decrease of 674 million yuan from 4.526 billion yuan at the end of the third quarter of 2023 when Xie Jiale served as fund manager. By the end of the second quarter of 2024, the net asset value of Fuguo Long-term Growth Mixed Fund A rose to 4.142 billion yuan.

Since May 23, 2024, Zhang Hong has been the fund manager of Fuguo New Opportunities Flexible Allocation Mixed A. As of July 29, 2024, Fuguo New Opportunities Flexible Allocation Mixed A has been managed by Zhang Hong for more than two months. During this period, the fund's return rate has been negative, at -13.32%, underperforming the benchmark's increase of -0.65% during the same period.

In short, judging from the changes in fund performance and net asset value, can fund managers such as Zhang Fusheng, Dong Zhiguo, Li Shiwei, Xie Jiale, and Zhang Hong, who "jumped ship" to join China Asset Management, change the situation in which "the fund makes money but investors do not make money" at China Asset Management?

2.3 Several fund managers suffered huge losses during their tenure after being “poached”, but received management fees ranging from millions to tens of millions of yuan

After some fund managers jumped to China Asset Management, the performance of the funds under their names not only declined but also suffered losses.

Taking Zhang Fusheng as an example, the Oriental Wealth Choice data shows that he began to manage the Fuwu Value Growth Mixed A, Fuwu Clean Energy Industry Flexible Allocation Mixed A, and Fuwu Auto Smart Selection Mixed A on February 16, May 27, and September 28, 2022, respectively. In 2022, he collected approximately RMB 21.5593 million, RMB 36.8678 million, and RMB 2.4114 million in management fees, respectively, but incurred losses of approximately RMB 402 million, RMB 734 million, and RMB 40 million, respectively; in 2023, he collected approximately RMB 17.4523 million, RMB 39.2447 million, and RMB 6.4129 million in management fees, respectively, but incurred losses of approximately RMB 210 million, RMB 762 million, and RMB 80 million, respectively.

In addition, Zhang Fusheng began to serve as the fund manager of the newly launched fund, China Asset Management Carbon Neutrality Mixed A, on February 24, 2023. The fund collected approximately RMB 8.1537 million in management fees in 2023 and suffered a loss of approximately RMB 96.525 million.

Dong Zhiguo, who used to be a fund manager at Qianhai Kaiyuan Fund, joined China Asset Management and became the fund manager of China Asset Management National Security Theme Mixed A on February 28, 2023. While the fund collected more than 5 million yuan in management fees in 2023, it also suffered a loss of more than 60 million yuan.

In summary, some fund managers who had worked in other fund companies, after joining China Asset Management, the performance of their funds either failed to continue their previous high performance history or faced the test of weak performance.

3. The chairman and vice chairman receive salaries from shareholders. Chairman Pei Changjiang’s total salary in the past five years is nearly 8 million yuan

Since 2024, there have been frequent market news about salary caps and salary refunds in the fund industry. There are even rumors that "salaries exceeding the standard will be refunded", and the standard line is around 3 million yuan.

In contrast, the chairman of China Asset Management, Pei Changjiang, is nearly 60 years old, and the vice chairman, Fang Rongyi, is over 50 years old. Both of them receive salaries from shareholders, with the chairman receiving nearly 8 million yuan in salary in the past five years.

3.1 The chairman was paid by shareholders when he was nearly 60 years old, with a total salary of nearly 8 million yuan in 5 years

Pei Changjiang has served as a director of Wells Fargo Fund since August 2014, and as chairman of Wells Fargo Fund since March 2019. Pei Changjiang was born in 1965 and is nearly 60 years old.

Looking back at Pei Changjiang’s resume, Pei Changjiang, a master of economics, has served as secretary of the board of directors of Haitong Securities since September 26, 2023, and has served as joint company secretary and joint authorized representative of Haitong Securities since July 6, 2023; from August 2013 to June 2023, he served as deputy general manager of Haitong Securities; from July 1993 to October 2002, he served in Shenyin & Wanguo Securities Co., Ltd. (formerly Shanghai Wanguo Securities Co., Ltd.) in various positions, including researcher of the research department, assistant to the general manager of the Zhabei sales department, general manager, and Zhejiang management director. From October 2002 to August 2013, he served as the investment director of Huabao Trust Investment Co., Ltd. and the director and general manager of Huabao Xingye Fund Management Co., Ltd. From November 2014 to December 2023, he served as the chairman of Shanghai Haitong Securities Asset Management Co., Ltd. From September 2015 to March 2016, he served as the chairman of Haitong Futures Co., Ltd. From March 2016 to December 2023, he served as the chairman of Haitong Futures Co., Ltd.

Looking back at Pei Changjiang's work history, it is not difficult to find that he started as a researcher at a securities company in 1993, and has served as assistant to the general manager, deputy general manager, and general manager. He has worked in trust companies, fund companies, asset management companies, and futures companies. In 2023, he returned to the securities company as joint company secretary, secretary of the board of directors and deputy general manager.

At the same time, looking at Gu Peichangjiang’s employment history, he served as a director of China Asset Management in August 2014 and as chairman of China Asset Management in March 2019. He may not have served as a fund manager before that.

In addition, although Wells Fargo Fund did not disclose Pei Changjiang's remuneration at Wells Fargo Fund, Pei Changjiang received remuneration from shareholders. According to Haitong Securities' annual reports for 2019-2023, Pei Changjiang's total pre-tax remuneration from Haitong Securities was RMB 1.3138 million, RMB 2.1234 million, RMB 2.024 million, RMB 864,100, and RMB 1.6492 million in 2019-2023, respectively.

It has been calculated that from 2019 to 2023, Pei Changjiang received a total of approximately RMB 7.9745 million in pre-tax remuneration from shareholders over the past five years.

In addition to Pei Changjiang, among the directors, supervisors and senior managers of Fuwu Fund, Vice Chairman Fang Rongyi also receives salary from shareholders.

3.2 The Vice Chairman serves as the Chairman of the Supervisory Board of the shareholder and receives salary. His salary in the past three years has exceeded RMB 5 million.

Since December 2014, Fang Rongyi has served as the vice chairman of China Asset Management.

According to the 2023 annual report of Shenwan Hongyuan, Fang Rongyi, 57 years old, is currently the supervisor and chairman of the board of supervisors of Shenwan Hongyuan. Fang Rongyi was formerly the deputy director of the Information Center of the Research Institute of Beijing UFIDA Electronic Financial Technology Co., Ltd.; associate professor of the Business Administration Education Center of Xiamen University; financial director of Shenyin Wanguo Securities Co., Ltd.; financial director and general manager of the Planning and Accounting Management Headquarters of Shenyin Wanguo Securities Co., Ltd.; deputy general manager, financial director, secretary of the board of directors, chief risk officer, member of the executive committee of Shenwan Hongyuan Securities Co., Ltd.; chairman of the Shanghai Shenwan Hongyuan Charity Foundation (preparatory) and deputy chairman of the professional committee of the board of supervisors of the China Association of Listed Companies.

In addition, Fang Rongyi has served as Vice Chairman of China Asset Management since December 2014; Supervisor of Zhengtong Co., Ltd. since December 2014; Vice Chairman of the Financial Accounting Professional Committee of the China Securities Association since May 2018; Part-time/Visiting Professor of East China University of Political Science and Law since May 2018; Supervisor and Chairman of the Supervisory Board of Shenwan Hongyuan Securities Co., Ltd. (hereinafter referred to as "Shenwan Hongyuan Securities") since September 2021; Supervisor and Chairman of the Supervisory Board of Shenwan Hongyuan since October 2021; Chairman of the Professional Committee of the Supervisory Board of the China Association of Public Companies since May 2023; Chairman of the Shanghai Shenwan Hongyuan Charity Foundation since July 2022; Chairman of the Shenwan Hongyuan Securities Trade Union since April 2023.

It is worth noting that in the past three years, Fang Rongyi’s pre-tax salary from Shenwan Hongyuan exceeded 5 million yuan.

According to the annual reports of Shenwan Hongyuan from 2021 to 2023, the total pre-tax remuneration received by Fang Rongyi from Shenwan Hongyuan in 2021-2023 was RMB 2.0987 million, RMB 1.4828 million and RMB 1.4798 million respectively.

It has been estimated that from 2021 to 2023, Fang Rongyi's pre-tax remuneration from Shenwan Hongyuan totaled 5.0613 million yuan.

Under the background of salary caps for fund managers, most of the fund managers “poached” by Wells Fargo Fund are experienced fund managers in equity. However, during the tenure of these fund managers, their funds suffered huge losses but they collected management fees of millions or even tens of millions of yuan. Among them, before the billion-dollar fund manager Fan Yan joined Wells Fargo Fund, the heavily weighted stocks of the multiple funds she managed at that time were similar, and the yields “all lost if one lost”. For Wells Fargo Fund, whether its “poaching” of multiple fund managers against the trend can solve its dilemma of “funds making money but investors not making money” is worth paying attention to.