Guo Fu CSI Military Industry Index Graded Securities Investment Fund is a structured fund financing product issued by Guo Fu Fund. The Fund adopts an indexed investment strategy and closely tracks the CSI Military Industry Index. Under normal market conditions, we will strive to control the absolute value of the daily average tracking deviation between the fund's net growth rate and the performance benchmark within 0.35%, and the annual tracking error within 4%.

The Fund mainly invests in the way of complete replication, relying on the quantitative investment platform of rich countries, according to the composition and benchmark weight of the constituent stocks in the CSI military industry index, and using the long-term and stable risk model and transaction cost model to construct the stock portfolio, so as to fit and track the income performance of the CSI military industry index, and make corresponding adjustments according to the changes of the constituent stocks and their weights of the underlying index.

1, asset allocation strategy

The fund manager mainly constructs the stock portfolio according to the composition and weight of the components of the CSI Military Industry Index, and makes corresponding adjustments according to the changes of the components of the index and their weights.

2. The construction of stock portfolio

Portfolio construction method: The Fund will adopt the complete copy method to construct the stock portfolio to fit and track the earnings performance of the CSI Military Industry Index. Portfolio adjustment: In principle, the stock portfolio constructed by the Fund will be adjusted according to the composition and weight changes of the constituent stocks of the CSI Military Industry Index.

3. Bond investment strategy

The fund manager will make reasonable interest rate expectations, judge the basic trend of the bond market and formulate asset allocation strategies under long-term control on the basis of in-depth analysis of the impact of macroeconomic situation at home and abroad, domestic fiscal policies and money market policies on the bond market. In the process of bond portfolio construction and management, the fund manager will adopt specific management methods such as term structure allocation, market conversion, credit spread and relative value judgment, credit risk assessment, cash management and so on to select a single bond.

4. Investment strategy of financial derivatives

According to the principle of risk management, the Fund will mainly choose stock index futures contracts with good liquidity and active trading. The Fund strives to use the leverage of stock index futures to reduce the transaction cost of frequent adjustment of stock positions.