| scope of investment |
The investment scope of the Fund includes stocks issued and listed in China according to law (including small and medium-sized board, GEM and other stocks and depositary receipts approved or registered for listing by the CSRC) Bonds (including 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 backed agency bonds, government backed bonds, local government bonds, convertible bonds (including convertible bonds with separate transactions), exchangeable bonds and other bonds permitted by the CSRC to invest), money market instruments Inter bank deposit receipts, bond repurchase, bank deposits, asset-backed securities, stock index futures, treasury bond futures, stock options, and other financial instruments permitted by laws and regulations or the CSRC for fund investment. The Fund may participate in financing business in accordance with laws and regulations. If laws and regulations or regulatory authorities 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. |
| investment strategy |
The Fund adopts an active investment strategy and completes the allocation of major categories of assets by forward-looking judgment of the relative returns of different financial assets. On the basis of the allocation of large categories of assets, select individual stocks to complete the construction of stock portfolio, and complete the construction of bond portfolio through the use of duration strategy, term structure strategy and individual bond selection strategy. On the basis of strict risk control, strive to achieve long-term stable returns. Allocation strategy of major categories of assets The Fund's asset allocation of major categories mainly predicts the development trend of the macro-economy through the analysis of the macroeconomic operation, national fiscal and monetary policies, national industrial policies, capital environment of the capital market, and the trend of the securities market, and accordingly evaluates the relative yield of the stock and bond markets in the future, and actively adjusts the stock The dynamic allocation of bond assets within a given time interval, so that the Fund can optimize its portfolio on the basis of maintaining a relatively stable overall risk level. Stock investment strategy The Fund conducts "bottom-up" selection of individual stocks through a combination of quantitative and qualitative methods, and selects stocks with reasonable valuation level, high margin of safety and profitability certainty. (1) Quantitative analysis 1) Reasonable valuation level The Fund selects undervalued listed companies through value assessment and analysis to form an optimized stock pool. According to the industry of the company, the Fund will evaluate the value of the company's shares by using the methods including P/E ratio, P/B ratio, market to sales ratio, PEG, EV/EBITDA, etc., and analyze whether the company's share price is in a reasonable valuation range, so as to avoid the investment risk implied by the overestimation of the stock value. 2) Profitability is certain The Fund uses the return on total assets, return on net assets and profit cash ratio (net operating cash flow/net profit) indicators to measure the profitability and quality of the Company. In addition, the Fund will also focus on the composition and main sources of the Company's profits, and comprehensively analyze its profitability and quality. 3) Strong growth potential in the future The expectation of the company's future earnings growth determines the changes in stock prices. Therefore, while focusing on the historical growth of the company, the Fund pays special attention to the growth potential of its future earnings. The Fund will forecast the growth rate of main business income, net profit growth rate and other indicators of the Company in the next one to three years, and judge their possibilities. (2) Qualitative analysis On the basis of quantitative analysis, the Fund selects high-quality stocks in combination with qualitative analysis, which mainly judges whether the business of the Company conforms to the laws of economic development, industrial policy direction, strong competitiveness and good governance structure. According to the qualitative analysis results, select the company's key stock investment with the following characteristics: 1) In line with the development direction of economic restructuring and industrial upgrading; 2) Core competitiveness with certain competitive barriers; 3) Have a good corporate governance structure and standardized internal management; 4) It has an efficient and flexible operating mechanism. For investment in depositary receipts, the Fund will select depositary receipts with comparative advantages by combining qualitative analysis and quantitative analysis on the basis of in-depth research. Inter bank deposit receipt investment strategy For interbank deposit receipts, the Fund will focus on the reference rate of return, liquidity (average daily turnover, issuance scale) and term structure of interbank deposit receipts, and make investment decisions in combination with the judgment of future interest rate trends (economic climate, seasonal factors and changes in monetary policy). Financing transaction strategy The Fund can enlarge the investment income through the leverage of financing transactions, on the premise of meeting the requirements of various laws and regulations and risk control requirements of financing transactions. Cash management strategy In terms of cash management, the fund manager conducts cash budget management through the prediction of future cash flows to meet the liquidity needs in the basic operation of the fund in a timely manner. At the same time, for the cash assets held by the Fund, the Fund Manager will improve the efficiency of the use of cash assets and maximize the yield of cash assets on the premise of ensuring the liquidity needs of the Fund. |