The fund's investment objectives are achieved mainly through a fully replicated strategy and appropriate alternative strategies to better track indicators. The fund strives to track deviations on an average daily basis at an absolute value of no more than 0. 35 per cent and no more than 4 per cent per year. The fund's total replication strategy is based on a complete reproduction, i. E. The construction of the fund's equity portfolio in terms of the indexed component shares and their weights, and the adjustment of the equity portfolio in terms of the changes in the indexed component shares and their weights. Alternative strategies allow the fund manager to replace the investment component, non-component, component unit derivatives, etc. In cases where market liquidity is inadequate and individual component units are restricted to investment for legal and regulatory reasons, resulting in the fund not being able to obtain a sufficient number of shares. The derivative investment strategy, in order to better achieve investment objectives, also entitles the fund to invest in financial derivatives such as forward contracts, swaps and foreign exchange transactions approved by the csrc. The fund's investment futures and options will be based on the principle of risk management, primarily on the selection of highly liquid and traded derivative contracts to improve investment efficiency and thus better track target indices. In terms of stock-to-forward investments, the fund makes investment decisions on a market basis on a daily basis, mainly through the purchase of stock-to-forward replacement spot strategies, hedging strategies, etc. At the same time, the investment unit's futures will also improve the financial efficiency of the product, matching it with the fund's foreclosure mechanism, providing the fund with a more adequate portfolio of cash and better liquidity management. In the case of sovereign futures investments, the fund will take into account, on the basis of risk management, hedging principles, the liquidity and return-on-risk characteristics of sovereign futures, and will participate appropriately in sovereign futures investments where the risk is manageable. In the case of equity options, the main purpose of the fund is hedging, taking full account of the liquidity and risk-return characteristics of the equity options, in accordance with the principles of risk management, and taking appropriate participation in the stock options, subject to risk control, by means of a strategy such as readiness to open a warehouse and delta neutrality. In order to better track the target index, the fund will also manage the fund's investments through investments in foreign exchange futures and address exchange rate risks during the buy-back process. The fund will conduct investments of certificates of domestic and external deposit, based on an in-depth study of the value of investments in basic securities, based on its investment objectives and equity strategy. In order to better achieve investment objectives, the fund can participate in financing and lending of securities, as required by investment management, subject to enhanced risk preparedness and prudential principles. The scope, duration and proportion of the loan securities will be reasonably determined by the fund's analysis of market conditions, investor type and structure, historical foreclosure data, liquidity of the loan securities, etc. In the event of a change in the laws and regulations governing financing and the transfer of services, the fund will be updated with its provisions. For the investment component of the non-component, alternative component, the fund may invest in the hong kong market through the qualified domestic institutional investor (qdii) offshore investment levels or the mainland's interconnectivity mechanism with hong kong stock market transactions. The offshore market fund investment strategy aims to achieve liquidity management and better track the index of the target. The fund may participate in public fund investments (including open funds and trading-type open funds (etf)) with similar investment objectives, investment strategies or tracking the same index as the index of the fund, and may participate in investments in other offshore market funds. In addition, in order to better achieve its investment objectives, increase the return on the fund and cover its operating costs, the fund will also participate in investments such as off-shore buy-back transactions and offshore securities lending transactions, subject to risk control. In the future, as instruments for investment in the securities market develop and enrich, the fund will actively seek other investment opportunities, such as laws and regulations or regulatory bodies that will subsequently allow the fund to invest in other types of investment, and the fund may adjust and update its investment strategy accordingly, following due process, and announce it in an update of its recruitment instructions. The fund will select assets of undervalued relative value to support the investments of classes of securities or vouchers and reduce credit risk, early payment risk, interest rate risk and liquidity risk for portfolio assets through diversification of duration and variety of investments. At the same time, it relies on disciplined investment processes and integrated risk budgeting mechanisms to control and increase the risk adjustment returns of the portfolio. The convertible bond investment strategy converts both equity and fixed-income securities in terms of investments in bonds. The fund will, on the one hand, undertake an in-depth exploration of the credit fundamentals of the debtor to clarify the floor protection of the convertible bond against credit risk, and, on the other hand, further analyse the profitability and growth of the targeted company to determine the medium- and long-term increase in convertible bonds. The fund will draw on a fundamentals study of credit debt, which will look at industry fundamentals, company industry position, competitive advantage, financial soundness, profitability, governance structure, etc., and will select convertible bonds that are financially sound and with low risk of credit default. On the basis of a combination of quantitative analysis and proactive research, the fund will develop investment strategies for the transfer of convertible bonds and the selection of suitable conversion times, in combination with a convertible bond pricing model, a trade price and their transfer value. The bond investment strategy combines a long-term adjustment strategy, a yield curve allocation strategy, a bond-type allocation strategy, a spread-wheeling strategy, and a variety of proactive management strategies for future market interest rates, with rigorous research to identify undervalued bonds and market investment opportunities and build a stable and liquid bond portfolio。
