"Core-satellite strategy" is an asset allocation strategy of the Fund. Generally speaking, the so-called "core-satellite strategy" is to divide the stock assets of the fund into two parts, each part is generally composed of different portfolios, and one part of it has a large weight in the whole portfolio, which plays a decisive "escort" role in the security and income of the whole portfolio, so it is called "core"; The other part has a slightly smaller weight in the whole combination, based on the core combination. However, just like a satellite roaming on a big planet, under certain conditions, it can have a broader investment space and invest more actively, actively and flexibly. It is a "satellite" and often gets amazing benefits.

The "core satellite strategy" first appeared in the 1990s, and was quickly adopted by institutional investors such as pension funds, annuity funds and funds in funds. Most world-renowned asset management companies such as VanguardGroup and BarclaysGlobalInvestors have adopted the "core satellite strategy" to manage the accounts of institutional investors. At present, the "core-satellite strategy" has been widely used in the mature international market, and it was first introduced to China, and the "core-satellite strategy" was adopted to invest in stock funds.

Grasp the core and pursue growth.

The "core portfolio" with the "core-satellite strategy" is generally to choose an authoritative big index to track the investment, with the purpose of controlling the systemic risk of the portfolio relative to the market and obtaining the average income of the market; The "satellite portfolio" actively invests by optimizing stocks in order to pursue the income beyond the market average.

According to the product description and related reports of Tianzhi Core Growth Fund, the stock assets of the fund are divided into two parts: core portfolio and satellite portfolio. The core portfolio invests in large-cap blue-chip stocks with good stability in Xinhua FTSE China A200 Index, accounting for 55%-65% of the total net asset value. Using tracking error control technology and other methods to reduce volatility and make the long-term performance of the core portfolio relatively stable. The satellite portfolio will invest in small and medium-sized stocks with high quality and high growth potential, accounting for 35%-45% of the net asset value of all stocks. This part is aimed at assets with large risks and returns, which can provide positive kinetic energy for the whole portfolio when it rises. Through this combination, we can not only give full play to the advantages of long-term stable income and low risk of the core combination, but also fully reflect the advantages of the satellite combination in discovering and grasping the opportunity to obtain excess income. At the same time, due to the low correlation between the core portfolio and the satellite portfolio, the overall risk of stock assets can be effectively dispersed and reduced, thus realizing long-term capital appreciation under the premise of controlling relative market risks. This may be the first time that Tianzhi Core Growth Fund launched the "core-satellite strategy" in China, which brought us new ideas.