investment strategy

(I) Allocation of large-scale assets In the allocation of large-scale assets, the Fund will mainly consider: (1) macroeconomic indicators, including GDP growth, industrial added value, PPI, CPI, changes in market interest rates, changes in import and export data, etc. ; (2) Microeconomic indicators, including profit changes and profit expectations of major enterprises in various industries; (3) market indicators, including the ups and downs of the stock market and the bond market and the expected rate of return, the overall market valuation level and its comparison with foreign markets, the relationship between supply and demand of market funds and its changes; (4) Policy factors, including fiscal policy, monetary policy, industrial policy and other policies closely related to the securities market. Through in-depth analysis of the above indicators and factors, the Fund will dynamically adjust the allocation ratio of fund assets among stocks, bonds, money market instruments and other assets, control market risks and improve allocation efficiency.

(B) stock investment strategy

1. Industry allocation strategy The Fund will allocate industries that are in a stable medium-and long-term development trend and are expected to enter a stable medium-and long-term development trend as key industry assets by analyzing the fundamental factors that affect the medium-and long-term development of the industry, such as national macroeconomic operation, industrial structure adjustment, industry's own life cycle, contribution to national economic development, and industrial technological innovation. Indicators of concern include: (1) changes in industrial policies: analyze the supporting or restraining policies of various sub-industries and judge the impact of policies on the industry prospects; (2) Prosperity: judge the prosperity characteristics of each sub-field, and select the sub-field with higher stage prosperity for key allocation; (3) Relative profitability and valuation level: dynamically analyze the relative profitability and valuation level of each sub-industry, increase the allocation ratio of sub-industries that are underestimated by the market stage and have higher profit expectations, and reduce the allocation ratio of sub-industries that are overestimated by the market stage and have lower profit expectations; (4) Secondary asset market situation: according to the secondary capital market situation, when the market is in a downward trend, upgrade the defense sub-industry configuration; When the market prosperity improves or there are obvious signs of reversal, the partial periodic sub-industry allocation will be improved.

2. Individual stock allocation strategy On the basis of industry allocation, through the combination of qualitative analysis and quantitative analysis, select listed companies with greater investment value. (1) Qualitative analysis: The Fund conducts qualitative evaluation on the competitive advantages of listed companies. The relative competitiveness of listed companies in the industry is an important basis for determining the investment value, which mainly includes the following aspects: a, market advantages, including the market position and market share of listed companies; Whether it occupies a leading position in the market segment; Whether it has brand appeal or high industry popularity; Advantages of marketing channels and marketing networks, etc. B. Resources and monopoly advantages, including whether there are unique advantages of material or intangible resources, such as market resources and patented technologies. ; C. Product advantages, including whether you have a unique product that is difficult to imitate; Pricing ability of products, etc. ; D, other advantages, such as whether the central or local government policy support and other factors. The Fund also conducts a qualitative analysis of the operating conditions and corporate governance of listed companies, mainly to examine whether listed companies have clear and reasonable development strategies; Whether there is a clear business strategy and business model; Whether it has a reasonable governance structure and whether the management team is United, efficient, experienced and enterprising. (2) Quantitative analysis The Fund will conduct quantitative analysis on the main financial and valuation indicators reflecting the quality and growth potential of listed companies. When analyzing the earnings growth prospects of listed companies, the Fund will make full use of the financial data of listed companies and conduct quantitative screening through the growth ability indicators of listed companies, mainly including the growth rate of earnings per share and the growth rate of net assets. On the basis of the above research, the Fund will analyze the growth prospects of listed companies through quantitative and qualitative evaluation methods, and strive for the selected enterprises to have long-term competitive advantages.

3. Dynamic adjustment and portfolio optimization strategy The fund management will dynamically adjust the allocated industries and listed companies according to economic development, industrial structure upgrading, technological development and relevant national policy factors. In addition, based on the expected return and risk characteristics of individual securities in the fund portfolio, the investment portfolio is optimized to maximize the fund return at a reasonable risk level.