| investment strategy |
At the level of asset allocation, the Fund is guided by asset allocation, and strives to obtain returns on the basis of risk control through flexible asset allocation of stocks, bonds and short-term financial instruments; On the level of industry allocation, according to the prosperity degree of each industry, industry asset allocation is carried out; In terms of stock selection, the Fund will tap industry leaders and invest in industry leading enterprises with investment value; The Fund's bond investment adheres to duration management and convexity analysis as the core, and takes robust active investment as the leading factor, selecting undervalued securities to obtain higher returns. Asset allocation The Fund implements an asset allocation oriented investment strategy through a "top-down" approach. The Fund allocates assets through structural analysis, combining qualitative and quantitative indicators, and analyzes economic growth expectations, relevant policy expectations, inflation, valuation levels, industry conditions, capital flows, market sentiment, market structure characteristics and other aspects of different asset categories, Expect the future returns of the stock market and bond market, and combine risk constraints and investment restrictions to form an asset allocation plan. Selected individual stocks The Fund believes that industry leading enterprises are industry representative enterprises with distinctive core competitiveness and value creation ability, usually ranking in the top 20% of the industry. Leading enterprises in the industry are representative enterprises in the industry, representing the development trend of the industry. Leading enterprises in the industry have core competitiveness, can provide products or services more effectively, and have the ability to obtain their own development or comprehensive quality. Leading enterprises in the industry can continue to provide products or services at lower prices or with more satisfactory quality for consumers, and have sustained good performance or obvious growth records or prospects, so they can become strong enterprises with long-term survival and continuous growth. (1) Stock selection principle Adhering to the concept of value investment, the Fund pursues the principle of stock selection based on the trinity of fundamentals, management and margin of safety, explores leading enterprises in various industries, and strives to enable investors of the Fund to share the fruits of China's economic growth to the maximum extent. The proportion of the Fund's investment in the stocks of industry leading enterprises shall account for more than 80% (including 80%) of the Fund's stock assets; The proportion of the Fund's investment in stocks of non industry leading enterprises should account for less than 20% (excluding 20%) of the Fund's stock assets, but based on fundamental research, there is sufficient reason to believe that the investment is in line with the Fund's investment philosophy. (2) Stock selection procedures and methods The Fund adopts a "bottom-up" approach to stock selection. The Fund grasps value investment from the two main directions of company fundamentals and market, establishes a stock screening framework, and focuses on stock screening for industry leading enterprises. In combination with the industry background, competition pattern, as well as the company's financial indicators, business strategy, management and corporate governance, we comprehensively and systematically select good companies whose market prices are lower than their intrinsic values. ① Primary selection Set up an investment restriction board, eliminate ST listed companies, companies with serious suspicion and investigated by the securities regulatory authorities, and companies with abnormal fluctuations in stock prices in the past year to form a stock investment base. ② Preferred On the basis of the "basic stock investment pool", the Fund determines the specific stocks to enter the fund alternative pool through comprehensive analysis and research. The Fund has comprehensively constructed the industry leading screening model from the aspects of core competitiveness, value creation ability and financial security, screened the basic stock investment database, and selected the top 20% companies in the industry as the industry leading enterprises to enter the fund candidate database; In addition, industry researchers can propose other candidate industry leading enterprises according to the particularity of the industry (such as oligopoly), and the candidate industry leading enterprises approved by the company's decision-making process also enter the fund candidate database. In addition, the Fund may choose to invest in non leading enterprises that conform to the Fund's investment philosophy, and its investment proportion shall not exceed 20% of the Fund's stock assets. ③ Selected The Fund selects industry leading enterprises according to the screening model of industry leading enterprises, and further selects industry leading enterprises through field investigation of the company's operation and management status and securities valuation. The primary selection and optimization are mainly based on the open data and information, and the selection is mainly to judge the basic situation of enterprises through the actual inspection of enterprises. Field investigation is an important means to obtain the true information of enterprises. In particular, it is difficult to disclose the management status of listed companies accurately through public data. Face to face interviews and observations will help us obtain first-hand information about the company's fundamentals and management status. On the basis of selected securities, the Fund further focuses on the margin of safety of the securities to be invested. The margin of safety refers to the difference between the market price of an enterprise and its valuation. Select specific and applicable valuation methods for different companies according to industry characteristics, enterprise growth stage and other factors. The Fund will invest in listed companies with sufficient margin of safety, which is usually set at 10%. With the approval of the Investment Decision making Committee, the Fund may adjust the margin of safety according to market conditions. Industry configuration The Fund conducts industry prosperity research on the basis of economic cycle analysis, and allocates industry assets according to the prosperity degree of each industry. The Fund adopts the industry evaluation framework to conduct qualitative and quantitative analysis from the basic characteristics of the industry, the financial characteristics of the industry, the market's valuation level for the industry, and the special trends/events of the industry, to judge the future trend of listed companies in the industry, and set a significantly higher market allocation ratio for specific industries, Or significantly lower than or even prohibited from investment. Investment strategy of depositary receipts 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. |