Bosera Funds Unveils Strategic Roadmap for the 15th Five-Year Plan Period Amid Industry Quality Shift

May marked the first anniversary of the Action Plan for Promoting High-Quality Development of the Public Fund Industry, officially released by the China Securities Regulatory Commission. The policy framework calls for adherence to the political nature and people-centred orientation of financial work. It encourages fee reductions to deliver greater benefits to investors, supports wider development of equity-containing funds, standardises equity fund management anchored on performance benchmarks, reinforces long-cycle assessment and counter-cyclical allocation, and steers the sector away from the former model focused on rapid asset expansion towards high-quality development centred on investor returns.

2026 serves as the launch year for the 15th Five-Year Plan. The plan includes the goal of accelerating efforts to build a financially strong country, marking the first time this objective has been incorporated into a five-year plan proposal. As the public fund sector presses ahead with high-quality transformation and progress towards a financially strong country, the asset management industry faces fresh opportunities alongside operational challenges. Continuous breakthroughs and deeper penetration of artificial intelligence are reshaping asset management ecosystems across investment research, operational administration and client services.

Against the backdrop of the 15th Five-Year Plan, Bosera Funds targets becoming an industry-leading asset management firm grounded in value discovery and prioritising investor interests. The institution aims to act as a creator of customer value, a discoverer of investment value, a pioneer of high-quality development and a contributor to building a financially strong nation.

To deliver on this strategic vision, Bosera Funds will implement a “1+2+1” development framework. The framework comprises one core culture, two core capabilities and one integrated platform. The core culture refers to distinctive Chinese financial principles encapsulated in five guiding norms and five prohibitions. The two core capabilities stand for asset investment expertise and asset allocation proficiency. The integrated platform centres on assessment mechanisms and performance benchmarks. Platform development will accelerate integrated investment research, uniting research teams spanning different sectors, strategies and asset classes. The infrastructure will help portfolio managers overcome cognitive constraints and scale limits, supporting the generation of excess returns against benchmarks.

Bosera Funds is pushing forward structural optimisation and fostering new growth drivers. The group is actively scaling back its traditional bond fund business while expanding exchange-traded funds and low-to-medium volatility equity-containing products, with new growth streams offsetting adjustments in legacy operations.

On the ETF front, Bosera Funds is building a diversified multi-asset ETF matrix and developing flagship sci-tech index products. A suite of STAR Market ETFs covering STAR 100, STAR AI and STAR Composite indices forms its branded “Seven Star STAR Market Series”. In 2026, the firm continues rolling out funds covering aerospace, power technology, batteries, photovoltaics and other technology and green finance segments. Exchange data shows non-monetary ETF assets under Bosera Funds exceeded RMB 229.2 billion by the end of the second quarter of 2026, ranking seventh across the domestic market.

Capitalising on wealth management demand within a low interest rate environment, the firm is expanding low-risk fixed income plus and fund-of-funds products. Building on established fixed income strengths, Bosera Funds is executing a strategic shift into fixed income plus strategies, constructing a full-spectrum product matrix covering low-volatility, balanced and growth-oriented tiers. Newly launched FOF products raised more than RMB 7 billion by 15 April 2026, recording rapid growth among domestic peers. Expansion of ETFs, fixed income plus and FOF offerings lifts the proportion of equity-linked business, optimises overall business structure and strengthens capacity to support high-quality development of the real economy.

Bosera Funds has embarked on its new phase of high-quality development. Integrated investment research reforms will deepen internal coordination to sustain steady progress.

The asset manager will advance its transformation from a fixed income specialist to a leading fixed income plus provider, building product lines focused on stable returns, low volatility and drawdown control. Coordinated product, investment and market operations will cater to diversified wealth management requirements.

Internal capacity building will continue. Within equity investment, upgrades to the integrated investment research platform target improved long-term investment outcomes. The firm will adapt to benchmark-based assessment rules and industry shifts, refining mechanisms and incentives to translate performance improvements into sustainable asset growth. In pension investment, the group will consolidate track records for annuity mandates and enhance end-to-end refined management and risk oversight.

Emerging opportunities will unlock new competitive edges. The firm will pursue differentiated positioning in the expanding ETF market. Bosera International will serve as a gateway to capture cross-border prospects. Under its AI plus asset management strategy, the group will upgrade its central intelligent system and AI agent capabilities to digitally empower all business lines and build technological competitive moats.

Robust governance underpins stable operations. Ongoing enhancements to risk and compliance frameworks will reinforce prudent management. The firm will uphold the five guiding norms and five prohibitions defining Chinese financial culture together with China Merchants Group’s internal code of conduct, establishing a solid foundation for sustained development.

Bosera Funds sets out on a new journey of high-quality development with its strategic vision of becoming an industry-leading asset manager rooted in value discovery and investor interests. The firm will advance value research and long-term client engagement, support China Merchants Group’s third-phase entrepreneurship initiative, generate greater value for the state, society and clients, and contribute to advancing the drive to build a financially strong country amid Chinese modernisation.