Investment objective: On the basis of strictly controlling investment risks and maintaining asset liquidity, we will pursue long-term stable appreciation of fund assets through proactive investment management.

Investment scope: The funds are invested in financial instruments with good liquidity, including government bonds, financial bonds, central bank bills, local government bonds, corporate bonds, corporate bonds, medium-term notes, short-term financing bonds, ultra-short-term financing bonds, asset-backed securities, subordinated bonds, convertible bonds (including convertible bonds traded separately), private placement bond of small and medium-sized enterprises, bond repurchase, money market instruments and bank deposits. The Fund does not buy stocks from the secondary market, and does not participate in the initial public offering or additional issuance of stocks in the primary market, but it can hold stocks converted from convertible corporate bonds it holds, warrants issued for holding stocks, and warrants generated by investing in financial instruments such as separable convertible bonds. The Fund shall sell the stocks held for the above reasons within 6 months from the date when they can be traded. The warrants held for the above reasons shall be sold by the Fund within 1 month from the trading day. 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 adopts a combination of top-down and bottom-up investment strategies to achieve the best ratio of risk and return under the premise of strictly controlling risks. 1. Generic allocation strategy The Fund qualitatively and quantitatively analyzes the credit risk, liquidity risk and risk-adjusted rate of return or profitability of different generic bond assets, and determines and dynamically adjusts the allocation ratio among different generic bond assets by comparing or reasonably anticipating the changes in risk and rate of return of different generic bond assets, so as to determine the asset portfolio that best meets the risk-return characteristics of the Fund. 2. Long-term allocation strategy The Fund carefully studied the macroeconomic operation of China and the resulting monetary and fiscal policies, closely followed the interest rate sensitive indicators such as CPI, PPI, M2, M 1, and exchange rate, and used qualitative and quantitative methods to analyze and judge the future interest rate trend of China bond market, so as to determine a reasonable bond portfolio duration. (1) Macroeconomic environment analysis: By tracking and judging the macroeconomic data such as the year-on-year growth rate of industrial added value, the year-on-year growth rate of total retail sales of social consumer goods, the year-on-year growth rate of fixed assets investment and the year-on-year growth rate of import and export, we can judge the macroeconomic operation trend and its position in the economic cycle, and predict the position of national monetary policy, fiscal policy orientation and current interest rate in the interest rate hike cycle; Based on the judgment of interest rate cycle, closely follow and pay attention to financial operation data such as CPI and PPI, bank reserve ratio, money supply, credit situation, foreign trade deficit, foreign direct investment and other real economy operation data, and judge the short-term trend of interest rate and the possible regulatory policies adopted by the state; (2) Analysis of interest rate change trend: Based on the judgment of macroeconomic operation and interest rate change trend, and taking into account factors such as the supply of funds in the bond market and the expectation of mainstream markets, predict the change trend of bond yield; (3) Duration analysis: According to the change of interest rate cycle, the changing trend of market interest rate, the mainstream market expectation and the current bond yield level, the optimal bond portfolio duration is finally determined through scenario analysis and stress test under reasonable assumptions. When the overall market interest rate is expected to decrease, the Fund will extend the duration of the bond portfolio it holds, so as to gain the benefits of bond price increase when the market interest rate actually decreases; On the other hand, when the overall interest rate of the market is expected to rise, the duration of the portfolio will be shortened to avoid the capital loss caused by the risk of falling bond prices and obtain higher reinvestment income. 3. Term Structure Allocation Strategy The Fund will comprehensively examine the yield curve and the credit spread curve, and adjust the position of the portfolio through the morphological changes of the expected yield curve and the trend of the credit spread curve. On the basis of investigating the yield curve, the Fund will decide to adopt centralized strategy, dumbbell strategy or trapezoidal strategy. In order to profit from the deformation of the yield curve and the relative price changes of credit bonds with different maturities. Generally speaking, when the expected yield curve becomes steep, the foundation adopts a centralized strategy; When the expected yield curve becomes flat, dumbbell strategy will be adopted; When the expected yield curve remains unchanged or moves in parallel, the trapezoidal strategy is adopted. 4. Credit Bond Strategy (1) Credit Bond Investment Strategy The Fund adopts top-down and bottom-up investment strategies for credit bonds such as financial bonds and investment-grade enterprise (company) bonds. Through the internal credit analysis method, we select the bond varieties, macroeconomic environment, national industrial development policies, industry development status and trends, regulatory environment, company background, competitive position, governance structure, profitability, solvency, cash flow level and many other factors, and conduct an investigation from top to bottom. By giving different factors different weights, the bonds issued by the main body are divided into six credit grades by quantitative method, of which 1-3 grade. Grade 4-5 qualification is poor and can be held for a short time, which is regarded as a trading asset; Avoidance class has poor qualification and high credit risk, which limits the investment in it. The yield of credit bonds is based on the benchmark yield plus the credit spread reflecting the credit risk income. The benchmark rate of return is mainly influenced by the macroeconomic policy environment, and the credit spread rate of return is mainly influenced by the market credit spread curve of credit bonds corresponding to credit grades and the credit changes of credit bonds themselves. Therefore, the investment strategy of credit bonds can be subdivided into investment strategy based on the change of credit spread curve and investment strategy based on the change of credit of credit bonds. 1) investment strategy based on the change of credit spread curve First of all, the change of credit spread curve is affected by economic cycle and related market changes. If the macro-economy improves, the profitability of enterprises increases, the cash flow improves, and the credit conditions are relaxed, the credit spread will narrow; If the economy falls into depression, corporate losses increase, cash flow deteriorates and credit conditions tighten, credit spreads will widen. Secondly, it analyzes the influence of the changing trend of credit bond market capacity, credit bond structure and liquidity on the credit spread curve; At the same time, the change of policy also affects the change of investors' demand for credit bonds. The Fund will integrate various factors, analyze the overall and sub-industry trends of the credit spread curve, and determine the investment proportion of credit bonds with different risk categories. 2) The investment strategy based on the credit change of a single bond is not only influenced by macro-economy and industry cycle, but also the quality of the issuer of credit bonds is an important factor affecting the credit change of a single bond, including shareholders' background, corporate governance structure, management level, operating conditions, financial quality, financing ability and other factors. The Fund will evaluate the qualifications of bond issuers through the internal credit bond rating system of the company and the characteristics of their respective industries, judge the future credit change direction of individual bonds, and use the corresponding credit spread curve to price corporate bonds and corporate bonds, so as to explore undervalued bonds or avoid credit risks. (2) Credit risk control measures The Fund implements prudent risk control measures to effectively evaluate and control the credit risk exposure of the portfolio. By establishing a credit risk assessment system and selecting counterparties, we will strictly control important indicators such as the position of each credit rating and the distribution of portfolio positions, and control investment risks. 5. Liquidity management strategy In order to reasonably control the liquidity risk of the Fund in the open period and meet the liquidity demand of each open period, the Fund will appropriately match the portfolio duration of the bonds held with the closed period in investment management. 6. Interest spread strategy When the repurchase rate is lower than the bond yield, the Fund will conduct positive repurchase and invest the integrated funds in credit bonds to obtain the arbitrage value that the bond yield exceeds the cost of repurchase funds (i.e. the repurchase rate). 7. Investment strategy of asset-backed securities (including asset income plan) The fund manager comprehensively considers the macroeconomic situation, early repayment rate, default rate, asset pool structure and the prosperity of the industry where the assets of the asset pool are located, and predicts the future cash flow changes of the asset pool; Study the issuance terms of the underlying securities, predict the influence of the change of prepayment rate on the average duration and yield curve of the underlying securities, and pay close attention to the influence of liquidity change on the yield curve of the underlying securities. Under the premise of strictly controlling the credit risk exposure, through credit research and liquidity management, select the varieties with higher returns after risk adjustment for investment. According to the development of the market, the Fund can choose to invest in mezzanine tools, and seek the improvement of income under the premise of controlling risks. 8. private placement bond's investment strategy for small and medium-sized enterprises private placement bond is essentially a kind of corporate bond, but the issuer has expanded to unlisted small and medium-sized enterprises, expanding the bond investment scope of the fund. Because the main issuers of small and medium-sized enterprises in private placement bond are unlisted small and medium-sized enterprises, the management system and governance structure of enterprises are weaker than those of ordinary listed companies, the information disclosure situation is relatively lagging behind, and it is more difficult to evaluate the solvency of enterprises than ordinary listed companies. Moreover, the directional issuance model limits the number of qualified investors and will lead to certain liquidity risks. Therefore, the Fund's investment in private placement bond, a small and medium-sized enterprise, will focus on credit risk and liquidity risk. The Fund adopts a bottom-up approach to establish a credit rating system suitable for small and medium-sized enterprises in private placement bond, analyzes the credit of each coupon, and pursues a reasonable return under the premise of controllable credit risk. According to the internal credit analysis method, the Fund selects private placement bond varieties for small and medium-sized enterprises, focusing on the issuer's corporate background, competitive position, governance structure, profitability, solvency, cash flow level and many other factors, giving different weights to different factors, using quantitative methods to score and evaluate the investment value of bonds issued by the issuer, and selecting varieties with excellent qualifications, reasonable valuation and relatively sufficient circulation for moderate investment.

Dividend policy: 1. On the premise of meeting the dividend conditions of relevant funds, the maximum number of income distributions of the Fund each year is 12; Three months after the fund contract comes into effect, if the distributable profit per 65,438+00 fund shares is higher than that of 0.3 yuan (inclusive) after the closing of the last trading day of each year, the fund will make income distribution, and take that day as the base date of income distribution, and the proportion of each distribution shall not be less than 80% of the distributable profit per fund share on the base date of income distribution; If the fund contract takes effect less than 3 months, no income distribution may be made; 2. There are two ways to distribute fund income: cash dividend and dividend reinvestment. The fund shares registered in the open-end fund account of fund share holders in the registration system can be selected or automatically converted into fund shares for reinvestment. If investors do not choose, the default income distribution method of the Fund is cash dividend. The fund shares registered in the securities registration and settlement system under the Shenzhen securities account of the fund share holder can only be distributed in cash. Specific rights distribution procedures and other related matters shall be implemented in accordance with the relevant regulations of Shenzhen Stock Exchange and China Securities Depository and Clearing Co., Ltd.; 3. After fund income distribution, the net value of fund shares cannot be lower than the face value, that is, the net value of fund shares minus the income distribution amount of each fund share on the base date of fund income distribution cannot be lower than the face value; 4. Each fund share enjoys equal distribution rights; 5. Where laws, regulations or regulatory authorities provide otherwise, such provisions shall prevail. Unless otherwise stipulated by laws, regulations or regulatory agencies, the fund manager will adjust the above-mentioned fund income distribution policies after performing appropriate procedures.

Risk-return characteristics: this fund is a bond fund, which belongs to the low-risk variety of securities investment funds. The expected returns and risks of the fund are higher than those of money market funds, but lower than those of hybrid funds and equity funds.