1. The Fund conducts passive indexed investment by completely copying the underlying index. The construction of stock portfolio mainly fits the copied target index according to its constituent stocks and their weights, and makes corresponding adjustments according to the changes of constituent stocks and their weights, so as to copy and track the target index. Under the premise of strictly controlling the daily average tracking error and annual tracking error of the fund, the Fund strives to obtain investment income similar to the underlying index.
Due to the adjustment of the compilation method of the underlying index, the changes of constituent stocks and their weights (including allotment, additional issuance, temporary transfer of constituent stocks, etc.). ), or when the effect of fund tracking the underlying index may be affected by fund subscription and redemption, or when the liquidity is insufficient due to some special circumstances, or when the underlying index cannot be effectively copied and tracked due to other reasons, the fund manager can make appropriate modifications and adjustments to the portfolio management to reduce the tracking error.
The second is the allocation of large-scale assets. The fund manager mainly constructs the stock portfolio according to the composition and weight of the constituent stocks of the CSI Securities Insurance Index, and makes corresponding adjustments according to the changes of the constituent stocks and their weights. The proportion of assets invested by the Fund in stocks is not less than 90% of the assets of the Fund, and the proportion of assets invested in the constituent stocks and alternative constituent stocks of the CSI Securities Insurance Index is not less than 80% of the assets of non-cash funds; At the end of each trading day, after deducting the trading margin required for stock index futures contracts, the Fund maintains cash of not less than 5% of the fund's net asset value or government bonds with a maturity of less than one year.
Third, the stock investment strategy stock portfolio construction The Fund adopts the method of completely copying the underlying index, and constructs the stock portfolio according to the composition and weight of the constituent stocks of the underlying index. Because there are differences between the tracking portfolio and the underlying index portfolio, if there are special circumstances (such as the suspension of constituent stocks, insufficient stock liquidity and other factors that affect the index replication effect), the Fund will adopt alternative methods to construct the portfolio, so as to make the tracking portfolio as close as possible to the complete replication portfolio, so as to reduce the tracking error of the underlying index. The fund's stock portfolio adjusted by substitution method shall meet the investment ratio limit of not less than 90% of assets invested in stocks and not less than 80% of assets invested in the constituent stocks of CSI Securities Insurance Index and alternative constituent stocks.
Four. Adjustment of stock portfolio: The stock portfolio constructed by the Fund will be adjusted according to the changes of the constituent stocks of the CSI Securities Insurance Index and their weights, and the Fund will also make timely adjustments according to the investment ratio restrictions of laws and regulations and the changes of subscription and redemption, so as to ensure a high positive correlation between the growth rate of the fund's net value and the benchmark index and minimize the tracking error.