| scope of investment |
The investment scope of the Fund is financial instruments with good liquidity, including domestic stocks issued and listed according to law (including the main board, SME board, GEM and other stocks approved or registered for listing by the CSRC) Bonds (treasury bonds, central bank bills, financial bonds, corporate bonds, corporate bonds, medium-term notes, short-term financing bonds, ultra short-term financing bonds, subordinated bonds, government supported institutional bonds, local government bonds, convertible bonds (including separable trading convertible bonds), exchangeable bonds), asset-backed securities, bond repurchase, bank deposits (including negotiated deposits, time deposits and other bank deposits) Inter bank deposit receipts, money market instruments, treasury bond futures and other financial instruments, as well as other financial instruments permitted by laws and regulations or the CSRC to be invested by the Fund (subject to the relevant provisions of the CSRC). If laws and regulations or regulators allow the Fund to invest in other varieties in the future, the Fund Manager may include them into the investment scope after performing appropriate procedures, and may adjust the investment scope in a timely and reasonable manner in accordance with the then effective laws and regulations. |
| investment strategy |
Asset allocation strategy The Fund gives full play to the advantages of the Fund Manager in investment research and closely tracks the stock market, bond market The expected risks and returns of the three major categories of assets in the money market, and accordingly, the investment proportion of the Fund's assets among equity assets, fixed income assets and monetary assets is dynamically adjusted to seek long-term steady appreciation of the Fund's assets. Stock investment strategy On the premise of strictly controlling risks and maintaining asset liquidity, the Fund will appropriately participate in the investment of equity assets such as stocks to increase the Fund's income. (1) Industry configuration strategy The Fund first studies and analyzes the profit models of different industries, their relationship with the macroeconomic cycle, and the industry's own life cycle. Then, based on the judgment of the current macroeconomic cycle position, and in combination with the industry's profit model, it selects the industries with the most determined and fast growth in profits in the current period for key allocation. (2) Individual stock investment strategy The Fund selects individual stocks within the industry to be allocated by combining quantitative and qualitative methods. The quantitative method is mainly to investigate the profitability, profitability quality, growth ability, operating ability and debt level of listed companies through careful analysis of public data such as value indicators, growth indicators and profitability indicators, and preliminarily screen out high-quality stocks with healthy financial status and good growth. The qualitative method is mainly based on the quantitative analysis. The company's researchers use a combination of desk research and field research to conduct qualitative analysis on the investment value, core competitiveness, growth of main business, corporate governance structure, business management ability, business model, etc. of the proposed investment company to determine the final investment goal. Bond investment strategy The Fund will actively use various investment analysis techniques based on bond research to find favorable market investment opportunities according to the current macroeconomic situation and financial market environment. Through the dynamic allocation and optimal matching of bond varieties, dynamically adjust the duration of fixed income securities portfolio, the investment proportion of inter-bank market and exchange market, and correspondingly adjust the matching between different bond varieties, in order to obtain higher and stable investment returns under lower risk conditions. (1) Interest rate expectation strategy It mainly refers to forecasting the future interest rate trend according to the domestic and foreign macroeconomic trends and the national fiscal policy and monetary policy orientation, and taking into account the market short-term interest rate level in the financial market and the trend of other economic indicators. In the macro economy, the fund manager focuses on the quality of macroeconomic operation and the relationship between domestic and foreign economies. In the financial market, the fund manager focuses on the analysis of the capital flow in the financial market, changes in supply and demand, changes in short-term interest rates in the financial market, etc. The future trend of interest rate will have the most important impact on the overall situation of the bond market. The fund manager will conduct strategic asset allocation on the bond market on the basis of interest rate expectations. (2) Yield curve strategy The future interest rate trend will have different effects on bond varieties with different maturities, thus affecting the yield curve shape of the market. The yield curve strategy is to summarize the volatility characteristics of the bond market by reviewing the dynamic changes of the market yield curve, and seek to obtain the yield generated by the changes in bond prices caused by the changes in the shape of the yield curve over a period of time. On the basis of the overall adjustment of portfolio duration, the fund manager will compare and analyze the performance of bullet strategy, barbell strategy and ladder strategy in different market environments, and build an optimized portfolio to obtain market returns. (3) Credit bond investment strategy Credit bonds generally refer to non state credit fixed income financial instruments other than national bonds, central bank bills and policy financial bonds. Therefore, in addition to the above investment strategies, the Fund will also analyze the investment proportion of credit bonds and invest in credit bonds in combination with the following investment strategies: 1) Strategies based on market credit spread curve The change of the market credit spread curve mainly depends on two aspects: the first is the change of the macroeconomic environment. When the macroeconomic environment is good, the profitability of enterprises will improve and cash flow will be abundant, the market credit spread curve will narrow, otherwise it will not; The second is the change trend of market factors such as credit bond market capacity, credit bond structure, liquidity, etc. When these factors lead to changes in the supply and demand relationship of the credit bond market, they will affect the change of the market credit spread curve. The Fund will comprehensively consider the above factors, predict the market credit spread level of credit bonds, and dynamically adjust the investment proportion of credit bonds. 2) Credit analysis strategy based on credit debt itself The Fund's credit analysis strategy based on credit bonds is mainly to analyze the credit risk of credit bonds by establishing a credit rating system. The researcher will comprehensively evaluate the credit risk of the bond issuer and the credit rating of the bond according to the changes in the bond issuer's own conditions, including the impact of changes in the company's property rights, corporate governance structure, management level, operating conditions, financial quality, risk resistance ability and other changes on the credit rating. At the same time, the manager calculates the average value and volatility of historical spreads by analyzing the historical spreads of different bonds in any period of time, so as to mine the credit bonds with undervalued relative value. The credit rating of the Fund's active investment in credit bonds is above AA (including AA), of which the investment in credit bonds with AA external rating accounts for no more than 20% of the total investment in credit bonds, the investment in credit bonds with AA+external rating accounts for no more than 60% of the total investment in credit bonds, and the investment in credit bonds with AAA external rating accounts for no less than 30% of the total investment in credit bonds. Convertible bond investment strategy Convertible bonds have the characteristics of both equity securities and fixed income securities, and have the characteristics of resisting downside risks and sharing gains from rising stock prices. The Fund will select convertible bonds with good basic quality and corresponding underlying securities with high rising potential to invest, and use quantitative valuation tools such as option pricing model to assess their investment value, so as to buy and hold them at a reasonable price. The Fund's active investment in convertible bonds shall not exceed 20% of the Fund's assets. Investment strategy of treasury bond futures In accordance with the provisions of relevant laws and regulations, the Fund will, for the purpose of hedging, conduct qualitative and quantitative analysis of the bond market in combination with the judgment of macroeconomic situation and policy trends, track and monitor the treasury bond futures and spot basis, liquidity, volatility and other indicators of treasury bond futures, Strive to realize the long-term stable appreciation of fund assets. At the same time, on the premise of compliance with relevant laws and regulations, the Fund will prudently obtain corresponding excess returns on the basis of using treasury bond futures investment to control risks, through the long substitution of treasury bond futures for bonds and the increase of robust asset positions, as well as the adjustment of the long short ratio of treasury bond futures and bonds, in order to obtain stable returns of the portfolio. Asset backed securities investment strategy On the premise of strictly controlling investment risks, the Fund will comprehensively evaluate the investment varieties of asset-backed securities from credit risk, liquidity risk, interest rate risk, tax factors and prepayment factors, and select the undervalued varieties for investment. |