1. The fund will analyse macroeconomic trends based on key economic indicators, taking into account a combination of monetary and fiscal policy developments, industry developments and portfolio market developments, and proactively judge the economic cycle and market timing of the asset allocation. Based on the relative changes in the risk-benefit characteristics of the various asset classes, the fund will conduct an analytical assessment of the risks and expected rates of return for future major asset classes, and establish the allocation, alignment principles and scope of adjustments between large asset classes, such as equities, bonds and cash. The fund will focus on listed companies that have a clear competitive advantage within the industry and that are more growth-oriented. The fund will combine qualitative and quantitative analysis, with growth dynamics as the main focus, to select shares with investment potential. (1) qualitative analysis of the fund's ability to grow through the analysis of the diverse dimensions of the business model, core competitiveness, management, governance, growth space, development prospects of the industry in which the company is listed, specifically the selection of listed companies with all or some of the following characteristics: 1) a firm with a strong dominant business, a strong industry position and a product or service that is in line with industry development trends; 2) a company's core competitiveness in one or more aspects of governance, brand, resources, technology, innovation capacity and business model, and its active expansion in the industry in which it is located, mainly as a result of productive capacity expansion and technological upgrading; 3) a corporate governance structure and a market-based operating mechanism have been established, with management having a clearer direction and a clear vision for the future development of the enterprise; 4) a company's industry is in line with the strategic direction of the country and the low risk of major degradation in the sector in which it is located. (2) in terms of quantitative analysis, the fund selects listed companies that grow well, have a sound valuation and have a good financial position through a comprehensive analysis of the growth capacity, valuation level, profitability, financial position of listed companies, among other things, using the following indicators: 1) the fund primarily chooses the top half of the net profit-growth industry, or the top half of the main business income-growth industry, or the top half of the net asset-receiving industry; 2) valuation level: in measuring the valuation level of the growth-listed company, the fund will select the appropriate equity valuation method based on the industry characteristics of the listed company and the characteristics of the company itself. Options for valuation include valuation methods such as the market gains act (p/e), the net market rates act (p/b), the market gains-long-term growth act (peg), the free cash flow discount model (fcff, fcfe) or the equity discount model (ddm) to assess and judge the value of investments in equities; 3) profitability: the main indicators to be examined are gross profit margins for sales, net profit rates, total asset return (rota), net asset return (roe), return on investment capital (roic); 4) financial situation: the main indicators to be examined are asset-liability ratios, asset turnover rates, liquidity ratios, etc. (3) the sector-based allocation strategy fund is in-depth and focused on investing in sectors with long-term growth potential, and, taking into account the characteristics of the economic development phase, a comprehensive analysis of industry policies, growth spatial, competitive patterns, gas levels and overall valuation levels, a comprehensive assessment of the value of investment and corresponding weighting of different industries. (4) the fund will choose to invest part of the fund's assets in the port unit or not in the port unit, where the fund's assets are not necessarily invested. 3. The fund's bond investments seek to maximize the overall return on the fund's assets by aligning the allocation of fixed-income investments with equity investments. (1) the long-term investment strategy for interest rate debt is the most important indicator of the sensitivity of the portfolio interest rate. The fund will track key variables affecting the availability of and demand for market funds in a timely manner, analyse and forecast trends in yield curves, develop corresponding bond allocation strategies based on changes in the yield curve, reduce the long-term duration of the upward trend in interest rates, and prolong the declining trend in interest rates, thereby benefiting from price fluctuations caused by changes in market interest rates. (2) the credit-debt investment strategy assesses the credit risk of the issuer based on macroeconomic performance and cyclical phases, analysis of trends, market conditions, competitive patterns in the industries in which issuers, such as corporate bonds, corporate bonds, based on the characteristics and general patterns of the operation of the industry, combined with the issuer's own financial position, competitive advantages and level of management, evaluating the credit risk of the issuer of the bond and evaluating the credit rating of the bond according to the contract of issuance of the particular bond, and determining the credit risk spread of the firm bond and corporate bonds. (3) convertible bond investment strategies the industry researcher, who manages the fund, conducts an in-depth study of the basics of the company of the transferable issuer and provides a full demonstration of the profitability and growth of the company. In terms of value assessment of debt reversible, the fund will use quantitative methods such as options pricing models to estimate the value of debt reversible and to select convertible bonds with an undervalued value for investment, given the right value. (4) exchangeable bond investment strategies the fund focuses on the analysis and research of exchangeable bonds against equities, and selects the varieties of companies and industries that are recovering, growing well, and more securely marginal. Based on fundamental analysis, a comprehensive analysis of debt characteristics, stock characteristics, etc. Of swapable bonds, combined with pricing models and standardized valuation tools, provides scientific value analysis and value investments for bonds. 4. Derivative investment strategy the fund, in strict compliance with the relevant laws and regulations, rationalizes the use of derivative instruments such as stock-in-sale to hedge or hedge investments. Investment is based on the principles of controlling investment risk and robust value addition. (1) the fund's investment unit will prioritize, in accordance with risk management principles, the selection of liquid and traded futures contracts for futures with the aim of hedging and hedged portfolio systemic risks. Based on the selection of the individual units of the fund, where systemic risks are accumulated, efforts are made to secure the excess returns of the individual units and the absolute gains of the hedge portfolio through the appropriate stock-in-time hedging systemic risks. (2) the treasury futures investment strategy the fund's treasury futures investment is based on risk management principles and is aimed at hedging and primarily at hedge risk. The bond futures, as a derivative of interest rates, help manage the maturity, liquidity and risk levels of the bond portfolio. The fund managers will conduct qualitative and quantitative analyses of the bond market, as required by the relevant laws and regulations, in conjunction with judgements on the macroeconomic situation and policy trends. The establishment of a quantitative analysis system to track indicators such as the base and cash balance of national debt, liquidity of national debt, level of volatility and effectiveness of hedging, with a view to achieving long-term stable value addition based on maximum security of the fund's assets. (3) the fund will participate in stock options trading for the main purpose of hedging, in accordance with risk management principles. The fund will determine the timing and proportion of investments involved in stock options transactions, taking into account investment objectives, scale limits, risk-return characteristics and the relevant qualifications and requirements of laws and regulations. The fund invests in stock options, and the fund manager will establish, in accordance with the precautionary principle, a stock options trading decision-making department or panel that will delegate responsibility for the investment approval of stock options to specific managers in order to protect against the risks of stock options investments. 5. The fund will use a combination of asset allocation, long-term management, yield curves, voucher selection and spread-pricing policies to invest in portfolio products based on strict compliance with laws and regulations and fund contracts. The fund will pay particular attention to the management of credit risk and liquidity in the portfolio of assets supporting securities, establishing a reasonable allocation of assets in the asset supporting securities class based on the principle of maximizing risk-adjusted returns, guaranteeing the relative security of the principal and the liquidity of the assets of the fund with a view to securing stable returns over the long term. Where conditions permit, fund managers may participate in financing operations to improve investment efficiency and risk management without changing the fund's established investment objectives, strategy and risk-return characteristics and in accordance with relevant laws and regulations, and without controlling risk. At that time, the principles of risk control for the participation of the fund in financing operations, specific participation ratios, cost and expenditure, disclosure of information, valuation methodology and other related matters are implemented in accordance with the provisions of the csrc and the requirements of other relevant laws and regulations, without the need for a general meeting of the share holders of the fund。in the future, with the development of the market and the need for the management of the fund, the fund manager may, without changing the objectives of the investment, comply with the provisions of the law and regulations, adjust or update the investment strategy accordingly, and announce it in the updated recruitment instructions。
