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In the summer of 2026, Tianhong Fund is navigating a complex landscape, marked by a founding shareholder's divestment, robust non-money market fund profits of nearly 29 billion yuan, and the liquidation of several pension FOFs due to insufficient scale. This highlights the multifaceted transformation of this trillion-yuan public fund giant.

In August 2026, founding shareholder Tianjin Trust listed its 4.99% stake in Tianhong Fund for sale at a base price of 1.567 billion yuan, implying an overall valuation of approximately 31.4 billion yuan for the company. This marks the first substantial change in Tianhong Fund's ownership structure since Ant Group's entry in 2015, ending an 11-year period of stability.

Contrasting this are the firm's impressive operational results. In the second quarter of 2026, funds under Tianhong Fund generated a combined profit of 28.975 billion yuan, with non-money market business contributing over 90% of that profit. Non-money market assets under management (AUM) reached 482.4 billion yuan, a nearly tenfold increase from 2019, now representing 39.4% of total scale. These figures suggest the trillion-yuan manager is accelerating its shift away from reliance on Yu'ebao, optimizing its business mix.

However, alongside this performance, several Tianhong products face liquidation pressure. In July 2026, two pension target-date FOFs triggered automatic contract termination clauses after their net asset value remained below 200 million yuan three years post-launch, entering the liquidation process. Other pension FOFs have AUM hovering below 100 million yuan, nearing the liquidation threshold. Another hybrid fund issued a termination warning after its net asset value stayed below 50 million yuan for consecutive days.

Ownership Shift: An 11-Year Stability Breaks, Valuation at 31.4 Billion Yuan

On August 3, an equity transfer announcement broke Tianhong Fund's decade-long calm. Tianjin Trust, the second-largest shareholder, officially listed its 4.99% stake for 1.567 billion yuan, with the disclosure period ending on August 31, 2026. An appraisal report values Tianhong Fund's total equity at approximately 31.411 billion yuan, providing a key market benchmark.

A decade ago, in 2013, Alibaba's acquisition of a 51% stake in Tianhong Fund cost 1.18 billion yuan, valuing the firm at about 2.314 billion yuan. Over ten years, the valuation has grown over 13 times, reflecting the asset value leap of this trillion-yuan manager. If the transfer completes, Tianjin Trust's holding will drop from 16.8% to 11.81%, making Inner Mongolia Junzheng Energy Chemical Group Co., Ltd. (Junzheng Energy), which holds 15.6%, the new second-largest shareholder.

Tianjin Trust, a founding shareholder since 2004, is divesting, a move of significant symbolic weight. The current ownership structure, with Ant Technology Group holding 51%, Tianjin Trust 16.8%, Junzheng Energy 15.6%, and others, had remained unchanged since Ant Group's registration in 2015. This transfer is the first substantive adjustment at the shareholder level.

The listing announcement did not specify the reason for the sale. However, the buyer must meet regulatory requirements for public fund management company shareholders. As only a small 4.99% stake is involved, the impact on daily operations and governance is expected to be limited. Yet, the founding shareholder's exit still raises market questions about the firm's future direction.

Contrasting Performance: Nearly 29 Billion in Profits, Non-Money Market Business Leads

In stark contrast to the ownership changes, Tianhong Fund delivered strong financial results. In Q2 2026, its funds generated combined profits of 28.975 billion yuan, ranking 17th in the industry. Notably, non-money market business accounted for over 90% of these profits, challenging the perception of Tianhong as a "money market fund-centric" firm. Passive index and QDII businesses (including hybrid and equity funds) contributed 20.245 billion yuan and 3 billion yuan, respectively, with passive index funds making up nearly 70% of total profits.

This diversification has driven business structure optimization. As of June 2026, Tianhong's non-money market AUM (excluding ETF connect) reached 482.4 billion yuan, a nearly tenfold increase from 44.7 billion yuan in June 2019, moving its industry ranking from 38th to 15th. The proportion of non-money market AUM rose from 3.72% to 39.4%. Total public fund AUM stood at about 1.22 trillion yuan, ranking 7th among 163 licensed institutions.

Financially, the listing announcement disclosed Q2 2026 revenue of 2.798 billion yuan and net profit of 896 million yuan, with total assets of 19.242 billion yuan. Compared to the full-year 2025 figures of 5.746 billion yuan in revenue and 1.885 billion yuan in net profit, the first half of 2026 has already achieved nearly half of the previous year's total.

Liquidation Shadow: Scale Challenges for Pension FOFs

However, amid the stellar performance, some Tianhong products face liquidation. On July 25, Tianhong Fund announced that the Cohen & Steers Closed-End Opportunity Fund (Tianhong Target Date 2045 Five-Year Hold Hybrid FOF) and the Tianhong Yongfeng Balanced Pension Target Three-Year Hold Hybrid FOF entered liquidation after their net asset value fell below 200 million yuan on the third anniversary of their July 24, 2023 launch. Both funds failed to attract external investors, with AUM at Q2 2026's end of just 18 million yuan and 13 million yuan, respectively.

Their performance lagged industry averages. As of July 24, 2026, the Tianhong Target Date 2045 FOF's 1-, 2-, and 3-year returns were 8.75%, 27.45%, and 10.78%, versus the average of 16.88%, 43.07%, and 24.13%. The Tianhong Yongfeng FOF's 2-year return was 20.65% (average 28.18%), and its 3-year return was 10.49% (average 15.94%).

Liquidation pressure is not isolated. Several Tianhong pension FOFs have AUM below 100 million yuan. Tianhong Pension 2035 Three-Year FOF and Tianhong Yongfeng Stable Pension Target One-Year Hold FOF have AUM of 98 million yuan and 88 million yuan, respectively. Tianhong Yongyu Stable Pension One-Year FOF has AUM of just 51 million yuan, hovering near the 50 million yuan threshold.

In August, a new warning emerged. On August 6, Tianhong issued a second notice on the Tianhong Strategy Select Flexible Hybrid Fund, which may trigger contract termination. It suspended subscriptions from August 4, and if the net asset value remains below the threshold by August 13, liquidation will proceed. Separately, on August 1, Tianhong warned that the Tianhong Duoyuan Rui Xuan One-Year Hold Hybrid Fund's net asset value had been below 50 million yuan for 30 consecutive working days, prompting a mandatory investor notice.

Dual Reality: High Growth and Liquidation Risks

Tianhong Fund's summer of 2026 presents a dual picture: nearly 29 billion yuan in quarterly profits versus pension FOF liquidations, with the founding shareholder's divestment adding a nuanced note. On the positive side, Tianhong is reducing its reliance on Yu'ebao, building a more balanced income stream through non-money market business growth. The 482.4 billion yuan in non-money market AUM and 39.4% share signal a shift from a scale-driven to a capability-driven model.

Conversely, the founding shareholder's exit, pension FOF liquidations, and products near the 50 million yuan "liquidation line" remind the market that even a trillion-yuan giant faces challenges in product planning, scale management, and investor trust amid intense industry competition. Balancing head-scale advantages with market acceptance for each product remains a key question for Tianhong Fund and the broader industry.