| scope of investment |
The Fund's investment scope covers financial instruments with good liquidity, including bonds (including national debt, central bank bills, financial bonds, corporate bonds, corporate bonds, publicly issued subordinated bonds, local government bonds, medium-term notes, short-term financing bonds, ultra short-term financing bonds, etc.), asset-backed securities, bond repurchase, inter-bank deposit receipts, bank deposits Money market instruments and 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). The Fund does not buy equity assets such as stocks, nor invest in convertible bonds and exchangeable bonds. If laws and regulations or regulatory authorities allow the fund to invest in other varieties in the future, the fund manager may include it into the investment scope after performing appropriate procedures. |
| investment strategy |
On the basis of comprehensive research and judgment of domestic and foreign macroeconomic situation and bond market, the Fund comprehensively analyzes macroeconomic development trend, interest rate trend, change trend of relative yield of bond market, liquidity of bonds, change of credit risk and other factors through top-down macro analysis and bottom-up individual bond research, In combination with the valuation level, expected return and expected risk characteristics of various fixed income assets in a specific economic situation, quantitative analysis methods are used to dig deeply into the underlying securities that are undervalued, so as to maximize the credit premium. The Fund will obtain the overall return rate of the bond market on the basis of duration strategy, term structure strategy and generic allocation strategy, and obtain excess returns through credit bond investment strategy and individual bond mining strategy. The Fund flexibly uses duration strategy, term structure strategy, generic allocation strategy, credit bond investment strategy and leverage investment strategy to maximize portfolio returns under the premise of strict management and control of portfolio risks. Generic configuration policy The Fund analyzes the credit risk, tax level, market liquidity, market risk and other factors of different types of fixed income varieties, studies the interest margin and change trend of investment varieties in the same period of treasury bonds, financial bonds, corporate bonds, exchanges and inter-bank markets, and formulates the allocation strategy of bond categories to obtain the investment income brought by the change of interest margin between different bond categories. Duration strategy The Fund will investigate the dynamic and expected changes of market interest rates, track and analyze the relevant factors that cause interest rate changes, and then formulate corresponding adjustment plans for the duration and position structure of the bond portfolio to reduce the impact of interest rate changes on the bond portfolio. The fixed income team of the Fund Manager will closely track the CPI, PPI, exchange rate, M2 and other interest rate sensitive indicators, analyze the change trend and structure of capital supply and demand in the financial market, predict the change trend of market interest rate level on this basis, and formulate the target duration of the bond portfolio. When the market interest rate level is expected to rise, appropriately reduce the duration of the bond portfolio; When the market interest rate is expected to decline, the duration of the bond portfolio should be appropriately increased to achieve the purpose of improving the yield of the bond portfolio by taking advantage of the fluctuation of the market interest rate and the adjustment of the duration of the bond portfolio. Term Structure Strategy By predicting the shape and change trend of the yield curve, the duration of various types of bonds is allocated; When the trend of the yield curve is difficult to judge, the duration of the portfolio is constructed by referring to the duration of the sample bonds of the benchmark index. Specifically, it can be divided into riding strategies that track the yield curve and bullet strategies, barbell strategies and ladder strategies based on the change of the yield curve. (1) When the yield curve is steep, that is, when the interest margin between adjacent maturities is large, the riding strategy is to buy bonds with a maturity at the steep part of the yield curve, and then obtain capital gains through the decline of the yield of bonds; (2) Bullet strategy is to focus the duration of bonds in the portfolio on one point of the yield curve, which is applicable when the yield curve is steep; (3) The barbell strategy is to focus the duration of bonds in the portfolio on both ends of the yield curve, which is applicable to butterfly changes where the yield curve declines at both ends more than in the middle; (4) The ladder strategy is to make the bond duration in the portfolio evenly distributed on the yield curve, which is suitable for the horizontal movement of the yield curve. Leveraged investment strategy The Fund will consider the risk return of bond investment, repurchase costs and other factors, and conduct investment operations through bond repurchase and leverage expansion within the scope of controllable risk and laws and regulations. Individual coupon mining strategy This investment strategy emphasizes the importance of corporate value mining. Based on the characteristics of the industry cycle and the fundamental risk characteristics of the company, it formulates an absolute return target strategy, identifies companies with valuation advantages and improved fundamentals, adopts a highly decentralized strategy, focuses on the distribution of advantageous bonds, and strives to increase the space for excess return of the portfolio. |