The fund's investment objectives are achieved mainly through replication strategies, alternative strategies and other appropriate 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 replication strategy is a passive index fund, which is mainly based on a full reproduction method, constructs an indexed portfolio based on the base weight of the component shares in the index and adjusts it accordingly to the changes in the index composition shares and their weights. The alternative strategy allows the fund manager to adapt and adjust the portfolio management appropriately to allow the portfolio to follow closely the index of the target through the replacement of the component unit, the non-component unit, the component unit derivatives, etc., when adjustments are expected to occur and the component unit behaves in terms of equity, growth, dividends, etc., or when the effect of the fund's indicators on the target is likely to have an impact on the fund's track, such as requisitions and foreclosures, or when certain special circumstances prevent the effective replication and tracking of the target index. The special circumstances include, but are not limited to, the following: (1) legal and regulatory restrictions on the ability to invest in a single component unit; (2) significant under-liquidation of the component unit; (3) long-term cut-off of the component stock; and (4) other reasonable reasons that place serious constraints on the fund's manager's tracking of the target index. The financial derivatives investment strategy (1) the offshore financial derivatives investment strategy, in order to better achieve the fund's investment objectives, will also invest, subject to the conditions allowed, in financial derivatives such as forward contracts, swaps and foreign exchange transactions approved by the csrc, with a view to reducing the level of errors in tracking. Based on the principles of risk management, the fund will, for hedging purposes, primarily select liquid and dynamic financial derivatives to be traded. In order to better track the target index, the fund can also manage the fund's investments and deal with exchange rate risks in the recovery process by investing in foreign exchange futures, foreign exchange forwards, foreign exchange swaps, etc. (2) to better achieve its investment objectives, the financial derivative investment strategy in the country, the fund may invest in futures, stock options and other domestically derived financial products permitted by the csrc, such as derivative instruments associated with the index or index component of the target, alternative component units. The fund will conduct transactions based on the principles of risk management, primarily by selecting highly liquid, traded derivative contracts. 1) the equity refers to futures investment strategy of the fund, the investment unit of the fund, the futures, which will be based on risk management principles and will be hedged for the purpose of selecting, inter alia, well liquid and traded futures contracts. The fund seeks to use the leverage of stock-based futures to reduce transaction costs and follow-up errors associated with frequent stock position adjustments to achieve the purpose of effectively tracking target indices. 2) the stock options policy of the fund will invest in stock options, taking full account of the liquidity and risk returns characteristics of the equity options, in accordance with the principles of risk management and with a view to hedging them, with a view to appropriately participating in stock options, subject to risk control, by means of a strategy such as reserve and delta neutrality. The depository certificate investment strategy provides the fund with reasonable participation, based on the precautionary principle, in the investment of the depository certificate, based on a combination of expected returns, risks, liquidity, etc., in order to better track the target index, pursue tracking deviations and minimize tracking errors. The offshore market fund investment strategy is designed to achieve liquidity management and to better track indicators. The fund may participate in public fund investments (including etfs) with similar investment objectives, investment strategies or follow-up with indicators similar to those for which the fund is intended. 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 offshore buy-back transactions and offshore securities lending transactions, subject to risk control. In the future, the fund will actively pursue other investment opportunities, such as laws and regulations or regulatory bodies that will subsequently allow the fund to invest in other types of investment, with the development of equity markets, the richness of financial instruments and innovations in trading practices, etc. The fund will, after due process, integrate them into its portfolio of investment strategies. The key to asset support for portfolio investment in the asset-supporting portfolio strategy lies in the analysis of the quality of underlying assets and future cash flows, and the fund will invest in vouchers following risk analysis and value assessment using a combination of fundamental analysis and quantitative models. The fund will exercise strict control over the overall level of investments in asset-support securities and diversify its investments to reduce liquidity risk. The convertible bonds and swapable bond investment strategy of the fund foresees a better and more robust mix of risk returns, using a variety of strategies, such as warehousing strategies, class strategies, coupons mining strategies, terms-value strategies, and rights-based arbitrage strategies, among others, for convertible and swapable bond investments. Among these, the silo strategy and the generic strategy will determine the total silo level, equity bias and debt-relationship ratio according to the underlying environment, equity value ratio. The voucher extraction strategy explores the possibility of debt swaps from a fundamental perspective and selects top-up, low-valued equity swaps as a type of excess gain. The value strategy of the clause, i. E. An in-depth analysis of the impact of the amendment of the resale price clause, the resell clause and the foreclosure clause on the value of the transfer, explores the investment opportunities of each clause. The equity arbitrage strategy, with the right to convert a debt into a stock at an agreed price, the fund will conduct a comprehensive analysis of the fundamentals and valuation levels of the positive equity, the value of the reversible premium, the liquidity of the reversible and targeted shares, the thinning of the reversible stock against the target stock and the pressure on the resale, to determine whether or not the right to convert a debt to the targeted stock is exercised, as well as the timing of the transfer and the time of holding of the repurchased stock. 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。
