1, Guo Fu CSI Military Industry Index Classified Securities Investment Fund is a structured fund wealth management product issued by Guo Fu Fund. Guo Fu CSI Military Industry Index Graded Securities Investment Fund is a structured fund financing product issued by Guo Fu Fund. The Fund invests in financial instruments with good liquidity, including components of the CSI Military Industry Index, alternative components, fixed-income assets (government bonds, financial bonds, corporate bonds, corporate bonds, subordinated bonds, convertible bonds, separate convertible bonds, central bank bills, medium-term bills, short-term financing bills (including ultra-short-term financing bills), asset-backed securities, pledged and buyout repurchase, bank deposits, etc. ) and derivatives. 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. If the requirements of laws and regulations on this ratio are changed, the changed ratio shall prevail, and the investment scope of the Fund will be adjusted accordingly.
2. The Fund mainly adopts the complete replication method to invest, relying on the quantitative investment platform of rich countries, according to the composition and benchmark weight of the constituent stocks in the CSI military industry index, and adopting the long-term and stable risk model and transaction cost model to construct the stock portfolio, so as to fit and track the income performance of the CSI military industry index, and make corresponding adjustments according to the changes of the constituent stocks and their weights of the underlying index. The Fund strives to control the absolute value of the daily average tracking deviation between the fund's net growth rate and the performance benchmark within 0.35%, and the annual tracking error within 4%. When it is expected that the constituent stocks will be adjusted, the constituent stocks will be allotted shares, issued shares and paid dividends. And the subscription and redemption of the Fund may have an impact on the fund's tracking effect on the CSI Military Industry Index, resulting in the inability to effectively copy and track the underlying index. The fund manager can take reasonable measures according to market conditions, make appropriate treatment and adjustment within a reasonable period of time, and strive to control the tracking error within a limited range.