On the basis of strictly controlling risks and maintaining high liquidity, we will strive to create a stable return on investment for fund share holders that is higher than the performance benchmark.
Investment scope
The Fund invests in financial instruments permitted by laws, regulations and regulatory agencies, as follows:
1, cash;
2. Notice deposit;
3. Short-term financing bonds;
4. Bank time deposits and certificates of deposit within one year (including one year);
5. Bonds with remaining maturity (or resale maturity) within 397 days (inclusive);
6 central bank bills with a term of less than one year (including one year);
7. Bond repurchase with a term of less than one year (including one year);
8. Medium-term notes with remaining term (or resale term) within 397 days (inclusive);
9. Asset-backed securities with a remaining term (or resale term) within 397 days (including 397 days);
10, laws and regulations or other financial instruments with good liquidity that China Securities Regulatory Commission allows money market funds to invest in.
If the future laws, regulations or regulatory agencies allow the Fund to invest in other varieties, the fund manager can include them in the investment scope after performing appropriate procedures.
investment strategy
On the basis of in-depth study of domestic and international macroeconomic trends, monetary policy trends and market capital supply and demand, the Fund will analyze and judge the trends of interest rate and yield curves, comprehensively consider the profitability, liquidity and risk characteristics of various investment products, and actively manage the fund's asset portfolio.
(A) asset allocation strategy
Fund managers mainly adopt a top-down approach, and through in-depth study of macro-economy and capital market, comprehensively consider market liquidity, credit qualification of deposit banks, credit rating of credit bonds and the yield level and liquidity characteristics of other assets, and set a reasonable allocation ratio of various assets.
(B) Interest rate expectation strategy
Since short-term interest rates have an important impact on fund assets, fund managers will continue to track and analyze the changes in short-term interest rates in the money market, so as to make reasonable adjustments to fund assets according to changes in the situation.
Specifically, fund managers will continue to track and analyze indicators such as macroeconomics and liquidity, and accurately grasp the trend of short-term interest rates and make timely responses on the basis of in-depth analysis of macroeconomic trends, liquidity conditions and macroeconomic policies. Generally speaking, when the expected interest rate rises, the average remaining period of the portfolio will be shortened appropriately; When the expected interest rate falls, the average remaining period of the portfolio shall be appropriately extended within the scope permitted by laws and regulations. On the basis of short-term interest rate term structure analysis and in-depth analysis of varieties, rationally allocate varieties. When the expected interest rate rises, the proportion of repurchased assets can be increased and the proportion of bond assets can be moderately reduced; The expected decline in interest rates will reduce the proportion of repurchased assets and increase the proportion of bond assets.
(C) Interest rate variety investment strategy
On the basis of studying the macroeconomic situation at home and abroad, the fund manager deeply analyzes and predicts the term structure of interest rate and the changing trend of bond market, and adjusts the bond portfolio duration according to the income risk characteristics of interest rate varieties. After determining the average duration of the combination, the rational allocation strategy of the term structure is selected by quantitative analysis technology.
(D) credit varieties investment strategy
Referring to the external credit rating results and based on the company's internal credit rating system, the fund manager carefully studied and screened all credit varieties publicly issued in the market, such as short-term financing bills, medium-term notes, corporate bonds, corporate bonds, etc., and formed a basic pool of credit varieties. According to the allocation needs of the fund, through the comprehensive analysis of yield to maturity, remaining maturity and liquidity, select the appropriate short-term credit varieties for investment.
(5) Investment strategies for bank time deposits and certificates of deposit.
In the process of portfolio investment, the Fund will expand the coverage of counterparties as much as possible on the basis of comprehensive consideration of costs and benefits, and dig out a number of bank investment bank time deposits and certificates of deposit with higher interest rates on the basis of inquiring from counterparties, so as to diversify investment risks as much as possible and improve the liquidity of deposits and certificates of deposit assets while obtaining higher investment returns.
(VI) Leveraged investment strategy
Under the premise of strictly observing the leverage ratio, the fund manager will comprehensively compare the repo rate with the short-term bond yield and deposit interest rate through in-depth analysis of the liquidity situation, judge whether there is room for spread arbitrage, and then decide whether to add leverage.
(vii) Liquidity management strategy
The Fund will pay close attention to the factors that affect the liquidity management of the Fund, such as changes in cash flow of subscription/redemption and seasonal capital flow, and establish combined liquidity monitoring and management indicators to realize real-time management of the liquidity of the Fund assets.
The Fund will make quantitative and qualitative analysis on liquidity through market structure, market influence, tracking analysis of major assets' liquidity changes, etc., increase liquidity constraints in the process of portfolio optimization, reasonably control assets' liquidity risk on the premise of giving consideration to fund income, comprehensively balance the allocation ratio of fund assets between liquid assets and profitable assets, and improve the overall liquidity of fund assets through cash holding, holding highly liquid securities, long-term repurchase and reducing the duration of portfolio.
Principle of income distribution
1. Each fund share of the same fund category enjoys the same distribution right.
2. Pay daily and monthly. The fund adopts the trading method of fixed share net value of 65,438+0.00 yuan. From the effective date of the fund contract, the realized net income of the fund will be distributed to the fund share holders on each open day to participate in the fund income distribution of the next day, and will be carried forward to the investor's fund account on a monthly basis, so that the net value of the fund share will always be 65,438+0.00 yuan. Fund income is paid once a month, and it will not be paid after less than one month of establishment.
3. The income distribution method is agreed as dividend reinvestment, and no reinvestment fee is charged. If the accumulated fund income in the current period is positive, increase the corresponding fund share for the fund share holders; If the accumulated fund income in the current period is negative, the corresponding fund share will decrease for the fund share holders. Investors can get cash income by redeeming fund shares.
4. If the investor redeems all the fund shares, the fund manager will automatically carry forward all the current accumulated income in the investor's account and pay it to the investor together with the redemption money; If investors partially redeem their fund shares, when the unpaid income of the fund shares is positive, the unpaid income will not be paid; When the unpaid income of the fund share is negative, the remaining fund share should be enough to make up for the profit and loss when the unpaid income of the current period is negative, otherwise the unpaid income of the current period will be automatically carried forward in proportion, and then the redemption money will be settled.
5. The fund shares purchased on the same day shall enjoy the right of income distribution of the fund from the next working day; The fund shares redeemed on the same day will not enjoy the income distribution right of the fund from the next working day.
6. Under the condition of complying with relevant laws and regulations and not affecting the interests of fund share holders, the fund manager may adjust the distribution method of fund income as appropriate after consultation with the fund custodian. This adjustment does not need the resolution of the fund share holders' meeting, and the fund manager shall make an announcement on the media designated by the China Securities Regulatory Commission in accordance with relevant regulations before implementing the change.
7. Where laws, regulations or regulatory agencies provide otherwise, such provisions shall prevail.