Investment objectives The Fund conducts passive index investment, and through strict investment discipline and quantitative risk management, strives to ensure that the absolute value of the daily average tracking deviation between the fund's net growth rate and the performance benchmark does not exceed 0.25%, and the annual tracking error does not exceed 3%.
Investment Ideas Based on the principle of fitting and tracking the CSI Phnom Penh government bond index, the Fund strives to provide investors with a transparent and low-cost target index investment tool through passive index investment.
Scope of investment The investment scope of the Fund mainly includes the underlying index component coupons and the alternative component coupons. The Fund will use all or almost all fund assets to track the performance of the underlying index. Under normal circumstances, the proportion of investment in the underlying index constituent bonds and alternative constituent bonds is not less than 80% of the fund's net asset value. In addition, in order to better achieve the investment objectives, the Fund can invest a small amount in derivatives (treasury bonds futures), other bond assets (treasury bonds, financial bonds, corporate bonds, corporate bonds, subordinated debts, convertible bonds, convertible bonds, central bank bills, medium-term notes, private debt of small and medium-sized enterprises, short-term financing bills, etc. ), asset-backed securities, bond repurchase, bank deposits and other fixed-income assets, as well as cash. If future laws, regulations or regulatory authorities allow other kinds of capital, the fund manager can include it in the investment scope after performing appropriate procedures.
Investment Strategy The Fund mainly adopts the representative stratified sampling replication strategy, invests in representative component bonds and alternative component bonds in the underlying index, or chooses non-component bonds as substitutes, and comprehensively considers tracking effects, operational risks and other factors to build a portfolio. According to the fund's asset scale, daily purchase and redemption, market liquidity and the trading characteristics and practices of bonds between exchanges and banks, the fund's assets are sampled and adjusted through optimization strategies such as duration matching, credit rating matching and term matching, with a view to reducing transaction costs. Due to the way of sampling and copying, as well as the influence of fund assets scale, daily purchase and redemption, market liquidity, bond trading characteristics and trading practices, the number, weight and type of individual bonds in the fund portfolio will be different from that of the underlying index components. In addition, the Fund will also actively participate in low-risk, controllable bond repurchase and other investments to make up for fund expenditures and increase fund income. (I) Asset allocation strategy In order to achieve the investment goal of optimally tracking the underlying index, the Fund will invest not less than 80% of the fund's net asset value in the underlying index component coupons and alternative component coupons. The Fund will adopt the method of sampling and copying, mainly based on the composition of the component bonds of the underlying index, and comprehensively consider the tracking effect, operational risk and other factors to build a portfolio, and optimize and adjust the sample according to the fund's asset scale, daily purchase and redemption, market liquidity, and the trading characteristics and trading practices of bonds between exchanges and banks, so as to realize effective tracking of the underlying index. (II) Bond Investment Strategy The Fund conducts passive index investment by stratified sampling and replication. On the premise of minimizing the tracking error, the Fund can adopt appropriate methods, such as duration matching, credit rating matching, term matching, etc., to adjust the fund assets, reduce transaction costs, and minimize the tracking error within the prescribed risk tolerance range. 1. Construction of bond portfolio The Fund consists of basic index constituent bonds and alternative constituent bonds. The construction principle is as follows: 1) The investment target is designed to allocate index component coupons by stratified sampling; And gradually consider the fund's asset size, market liquidity and transaction costs; 2) When encountering factors including but not limited to insufficient liquidity of constituent bonds, laws and regulations prohibiting the use of funds for related bonds, serious deviation of prices from reasonable valuation, non-conformity of trading volume of single constituent bonds with market trading practices, too large or too small fund size and other factors affecting the investment management of single bond issuance and index replication, the Fund may appropriately adjust the weight and types of single bonds according to relevant market conditions, or partially invest in alternative constituent bonds. 2. Adjustment of bond portfolio 1) Regularly adjust the indexed portfolio constructed by the Fund, and adjust its constituent bonds accordingly according to the underlying index it tracks. 2) Irregular adjustment A) Based on the matching of duration, weight, credit rating and term distribution, the fund manager will comprehensively consider the liquidity of sample bonds, transaction scale and other factors to dynamically sample and adjust the bond portfolio to achieve effective tracking of the underlying index. B) If the constituent bonds encounter situations including but not limited to delisting, insufficient liquidity, legal restrictions or portfolio optimization, the fund manager will comprehensively consider the minimization of tracking error and the interests of investors, and decide to partially hold cash or purchase relevant alternative portfolios. 3. Construction Method of Alternative Portfolio Due to the regular and irregular adjustment demand and other special market conditions, the fund manager can comprehensively consider the following principles, and when the underlying index component coupons and alternative component coupons cannot meet the investment demand, find alternative coupons for component coupons and alternative component coupons other than component coupons to construct alternative portfolios. The method of constructing the alternative portfolio is as follows: 1) According to the principle that the substituted bonds are similar in duration, credit rating and trading market, component bonds are selected from other investable targets to replace the bond pool; 2) Using the historical data of constituent bonds to replace the bonds in the bond bank for a long time, analyzing the correlation between them and the replaced bonds, and selecting the bonds with higher positive correlation for further investigation; 3) Analyze the liquidity of the above bonds, and select substitute bonds in combination with liquidity and correlation, so as to minimize the tracking error between the substitute portfolio and the substitute bonds. 4. Optimization of bond portfolio In order to better track the trend of the index, we will adopt appropriate methods to optimize and adjust the bond portfolio as a whole, such as duration matching, credit rating matching and term matching. 1) Duration matching strategy means that the duration of the portfolio is consistent with the duration of the underlying index, so that the bond portfolio and the underlying index have the same trend when the yield curve moves in parallel. 2) Credit rating matching Credit rating matching refers to aiming at the consistency of the weights of all credit ratings of the portfolio with the weights of the underlying index, striving to match the weights of all credit ratings of the fund portfolio with the distribution of the underlying index, and reducing the tracking error of credit rating mismatch. 3) Term matching Term matching refers to measuring the bond weight of each term, striving to match the weight of each term of the fund portfolio with the distribution of the underlying index, and reducing the tracking error caused by the change of term spread. 5. SME Private Debt Investment Strategy The Fund will strictly control risks by controlling the credit rating of SME private debt and limiting the proportion of individual SME private debt, and make a risk assessment of the overall interest rate risk exposure and credit risk exposure changes of the portfolio caused by investing in a single SME private debt, and fully consider the impact of a single SME private debt on the liquidity of the fund assets, and decide the investment varieties after credit research and liquidity management. The fund manager of the Fund will formulate a strict investment decision-making process, risk control system and credit risk and liquidity risk disposal plan for investing in private placement bond, which will be approved by the board of directors to prevent various risks such as credit risk and liquidity risk. (III) Derivatives Investment Fund The purpose of derivatives investment is to make the fund's investment portfolio closely track the relevant important characteristics of the underlying index or copy the underlying index, so as to better achieve the fund's investment objectives. The fund will mainly invest in treasury bonds futures, and its absolute total exposure to financial derivatives will not exceed 5% of the fund's assets. The fund's derivative products investment can only be used for risk hedging, not for speculation. In the future, if laws, regulations or regulatory authorities allow other interest-related derivatives, underlying index, underlying index component bonds or other non-component bonds that constitute the fund's investment portfolio, such as forwards, swaps, options, futures, etc. , and other investment products, the fund manager can bring them into the investment scope of the fund after performing appropriate procedures, and update and enrich the fund strategy. (d) If future laws and regulations or the China Securities Regulatory Commission allow the fund to invest in other varieties, the fund manager can bring them into the investment scope of the fund after performing appropriate procedures according to law, and update and enrich the fund strategy.
Dividend policy 1, each fund share enjoys the same distribution right; 2. When the growth rate of fund net value approved on the fund income evaluation date exceeds the growth rate of the target index by more than 0. 1% in the same period, the fund manager can distribute the income; 3. Under the premise of meeting the above-mentioned fund dividend conditions, the fund's income will be distributed at most 12 times a year. The principle of determining the amount of fund income distribution each time is: after income distribution, the fund's net growth rate will be as close as possible to the index growth rate of the same period; If the fund contract takes effect less than 3 months, no income distribution may be made; 4. Based on the nature and characteristics of the fund, there is no need to make up for the loss in the income distribution of the fund. The net value of fund shares after income distribution may be lower than the face value, that is, the net value of fund shares on the base date of fund income distribution (that is, the income evaluation date) may be lower than the face value after deducting the income distribution amount of unit fund shares; 5. The income of the fund is distributed in cash; 6. Where laws, regulations or regulatory authorities provide otherwise, such provisions shall prevail.
Performance benchmark CSI Phnom Penh medium-term government bond index
Risk-return characteristics The Fund is a bond fund, and its long-term average risk and expected return are lower than those of equity funds and hybrid funds, but higher than those of money market funds. The Fund is an index fund, which mainly tracks the performance of the underlying index by adopting the representative stratified sampling replication strategy, and has similar risk-return characteristics with the underlying index and the bond market represented by the underlying index.