How about double debt C(161221)? Investment objective

On the basis of pursuing stable appreciation of fund assets and effectively controlling risks, we strive to obtain investment income higher than the performance benchmark through proactive investment management. The investment concept

is based on value analysis, combining macro and micro, qualitative and quantitative, and carrying out active management, striving to effectively control risks and realize long-term appreciation of fund assets. Investment scope

The investment objects of the Fund are financial instruments with good liquidity, including domestic convertible bonds (including convertible bonds with separable transactions), credit bonds (i.e. corporate bonds, corporate bonds, subordinated bonds, short-term financing bonds, asset-backed securities, local government bonds, financial bonds and other non-state credit fixed-income financial instruments), government bonds, central bank bills, bond repurchases, bank deposits, stocks (including The Fund can participate in the subscription of initial public offerings or additional public offerings in the primary market (including GEM and SME board), and can hold stocks formed by convertible bonds, warrants issued by stocks held, warrants generated by investment in separable bonds, and other non-fixed income varieties allowed by laws and regulations or China Securities Regulatory Commission. The Fund does not take the initiative to buy stocks and warrants in the secondary market. If laws, regulations or other varieties of capital are allowed by the regulatory authorities in the future, the fund manager can include them in the investment scope after performing appropriate procedures. Investment strategy

1. Asset allocation The Fund adopts a stable and flexible investment strategy, mainly through active management of fixed-income financial instruments such as convertible bonds and credit bonds, and strives to obtain stable appreciation of fund assets on the basis of effective risk control; According to the trend of the stock market and the forecast of the rate of return on new shares subscription, we will moderately participate in the subscription of initial and additional new shares in the primary market, and strive to improve the overall rate of return of the fund. 2. Bond investment management The Fund adopts a top-down bond analysis method to determine the bond simulation portfolio and manage the portfolio risk. Figure 1, bond portfolio construction process ■(1) Basic value evaluation The main basis for bond basic value evaluation is the EquilibriumYieldCurves. Equilibrium yield curve refers to the reasonable position of yield curve when all related risks are compensated. Risk compensation includes five aspects: time value of funds (compensation), inflation compensation, term compensation, liquidity compensation and credit risk compensation. Through the quantitative analysis of these five parts of risk compensation, the equilibrium yield curve and its expected changes are obtained. The difference between the market yield curve and the equilibrium yield curve is the basis for estimating the expected returns of individual bonds and portfolios with various remaining maturities. Figure 2. Equilibrium yield curve ■ Based on the equilibrium yield curve, calculate the expected excess returns of bonds with different asset classes and different remaining maturities, and sort the expected excess returns to get the investment rating. On this basis, sell bonds with internal rate of return lower than equilibrium rate of return and buy bonds with internal rate of return higher than equilibrium rate of return. (2) Bond investment strategies Bond investment strategies mainly include duration strategy, yield curve strategy, category selection strategy and individual bond selection strategy. In different periods, the contribution of the above strategies to portfolio returns and risks is different, and the specific strategy depends on the degree of risk allowed by bond portfolio. Duration strategy refers to determining the duration allocation of bond portfolio according to the basic value evaluation, economic environment and market risk evaluation, and the specific requirements of fund bond investment for risk return. The strategy of yield curve means that the level of equilibrium yield and the reasonable form of equilibrium yield curve are first evaluated. Then, by comparing the market yield curve with the equilibrium yield curve, the degree of value deviation under different remaining periods is evaluated. Under the condition of meeting the established portfolio duration requirements, the allocation is made according to the expected rate of return after risk adjustment. Category selection strategy refers to the allocation among bond categories such as convertible bonds, credit bonds, national bonds, financial bonds and central bank bills. The valuation comparison between bond categories is based on the quantitative analysis of the basic factors of the bond market (including the fluctuation of interest margin, the probability of credit transfer, liquidity and so on). Under the principle of price/intrinsic value, the bond category is selected according to the rationality of interest margin between asset categories. The Fund will flexibly allocate convertible bonds and credit bonds according to the actual situation, based on the high profitability of convertible bonds to share the stock price rise and the defensive ability to resist downside risks, the ability of investment-grade credit bonds to have high and stable returns, and the low correlation between the yields of convertible bonds and credit bonds, so as to obtain higher returns on the basis of effectively controlling risks. The individual bond selection strategy refers to identifying bonds whose value is misjudged by the market through the bottom-up bond analysis process, choosing the right opportunity to invest in undervalued bonds and throwing out overvalued bonds. The analysis of individual coupons is based on price/intrinsic value analysis, and credit risk, liquidity and unique factors of individual coupons will be considered. (3) Investment management of convertible bonds Convertible bonds have the characteristics of both equity securities and fixed-income securities, and have the characteristics of resisting downside risks and sharing the gains from rising stock prices. The biggest advantage of convertible corporate bonds is that they can gain huge gains when stocks rise with less principal loss. We can make full use of the asymmetric distribution of risks and returns of convertible corporate bonds, buy bonds with low conversion premium rate, and hold the investment strategy. As long as the stock price of the company issuing convertible bonds rises during the duration of convertible corporate bonds, the investment can obtain excess returns. Based on the comprehensive analysis of the stock characteristics, debt characteristics, liquidity, dilution rate and other factors of convertible corporate bonds, the Fund uses quantitative valuation tools such as Black-Scholes option pricing model and binary tree option pricing model to evaluate its investment value, and selects one with high margin of safety, relatively favorable issuance terms and good liquidity. And the varieties with excellent basic stock fundamentals, strong profitability, good growth prospects, active stocks and high rising potential are bought and held at reasonable prices, and the convertible corporate bond portfolio is constructed according to factors such as internal rate of return, discount-premium ratio, duration and convexity, so as to obtain a stable return on investment. Split-transaction convertible corporate bonds are a combination product of warrants and corporate bonds. The corporate bonds and warrants in this product can be traded separately after listing, that is, they are combined when they are issued, and then automatically split into corporate bonds and warrants after listing. The investment of corporate bonds separated after the listing of convertible corporate bonds is managed according to the common bond investment strategy. Convertible bonds held by the Fund can be converted into stocks. (4) Investment management of credit bonds The Fund will establish different kinds of yield curve prediction models and credit spread curve prediction models according to the yield level of the credit bond market, taking into account factors such as credit rating, maturity, liquidity, market segmentation, coupon rate, tax characteristics, early repayment and redemption, and make valuation through these models, focusing on selecting credit bonds with the following characteristics: higher yield to maturity, higher current income, undervalued and expected. On the market allocation level, under the premise of controlling market risk and liquidity risk, the Fund will adjust the investment proportion of credit bond financial instruments in different markets according to the yield to maturity changes, liquidity changes and market size of credit bond financial instruments in exchange markets and inter-bank markets. In terms of variety selection, the Fund will optimize the allocation among various credit bond financial instruments by combining quantitative analysis and qualitative analysis based on the changing characteristics of the credit spread level of various credit bond financial instruments, macroeconomic forecast analysis and the influence of tax factors, taking into account factors such as liquidity and profitability. (5) Investment management of asset-backed securities The pricing of asset-backed securities is influenced by many factors, such as market interest rate, terms of issue, composition and quality of underlying assets, and early repayment rate. On the basis of fundamental analysis and macro analysis of bond market, the Fund will determine its intrinsic value by quantitative model. (6) Portfolio construction and adjustment The bond strategy group consists of the fund manager, the investment supervisor and the head of the bond group. Based on the experience of bond investment management of all members, the group evaluates whether the deviation between bond price and intrinsic value is reliable, and accordingly constructs a bond simulation portfolio. The bond strategy group meets regularly to discuss the bond strategy portfolio, buying undervalued bonds and selling overvalued bonds. At the same time, from the perspective of risk management, the influence of portfolio adjustment on portfolio duration and category weight is evaluated. With the development of the bond market and the deepening of financial innovation, as well as the emergence of fixed-income financial instruments that the Fund is allowed to invest in by relevant laws and regulations in the future, the Fund will evaluate these new varieties based on the principle of prudence, and adjust the scope and investment ratio of the capital-based varieties in a timely manner on the premise of meeting the capital-based objectives. 3. Investment strategy for subscription of new shares in the primary market The Fund will participate in subscription of new shares on the basis of evaluating the income and risk status of subscription of new shares. When purchasing new shares, the fund manager will combine the quantitative model of financial engineering, refer to the discounted cash flow method model and other methods to evaluate the intrinsic value of stocks, fully learn from the research results of external resources such as cooperative brokers, deeply explore the value of equity assets such as new shares to be issued and listed, evaluate the subscription yield, and formulate corresponding subscription and timing selling strategies through active management of subscription funds to obtain better investment returns. (1) Considering the company's fundamentals, the main indicators for the Fund to evaluate the company's fundamentals include value assessment, growth assessment, cash flow forecast and industry environmental assessment. Analysts consider the competitive trend of the industry, the competitive position of the company, the main driving factors of the company's cash flow growth in the short and long term, the key points of business development and the corporate governance structure from both qualitative and quantitative aspects. (2) Evaluating the stock value The Fund evaluates the intrinsic value of the stock with reference to the discounted cash flow method model, and will distinguish the sum of cash flows at different stages according to the different cash flow growth rates, that is, the intrinsic value of the stock. The difference between the stock market price and the intrinsic value is the main reference for the Fund to buy or sell stocks. When referring to the discounted cash flow method model, the Fund will consider the characteristics of China stock market and the specific situation of certain industries or companies. In addition, in practice, according to the actual situation and the depth of fund managers' understanding of IPO companies, the Fund will also choose other appropriate valuation methods, such as P/E, P/B, EV/EBITA and so on. (3) Investment management strategy The Fund predicts the market price of stocks after listing, analyzes and compares the subscription yield and the winning rate, and then decides whether to participate in the subscription and participation amount of new shares. Under normal circumstances, the Fund will sell the allocated new shares from the first day of circulation to control the fluctuation of the fund's net value. If the initial negotiable price is lower than the reasonable valuation, it will wait until the price rises to a reasonable price and sell it. Dividend policy

1. During the closed period of the Fund, the income distribution should follow the following principles: (1) The fund's income distribution method is cash; (2) Each fund share enjoys equal distribution rights; (3) After the fund income distribution, the net value of each fund share cannot be lower than the face value, that is, the net value of the fund share on the base date of fund income distribution minus the income distribution amount of each fund share cannot be lower than the face value; (4) After the fund contract comes into effect for 6 months, if the distributable profit of every 1 fund shares is higher than .5 yuan (inclusive) after the closing of the last trading day of each month, the fund will distribute the income within 1 working days of the following month, and the proportion of each fund income distribution is not less than 5% of the distributable profit; (5) Under the premise of meeting the conditions of fund income distribution, the fund income distribution shall be at most 12 times a year and at least 1 time; (6) Under the premise of meeting the above income distribution conditions, the annual income distribution ratio of the fund shall not be less than 9% of the realized income of the year; (7) If the fund contract takes effect less than 3 months, the income distribution may not be carried out; (8) Where laws, regulations or regulatory agencies provide otherwise, such provisions shall prevail. 2. After the fund is closed and converted to open, the income distribution of the fund shall follow the following principles: (1) The income distribution method of the fund is cash and dividend reinvestment. Investors can choose to receive cash dividends or automatically convert cash dividends into fund shares for reinvestment according to the net value of fund shares on the reinvestment date. If investors do not choose, the default income distribution method of the Fund is cash dividends; The fund shares registered in Shenzhen securities account can only be in the form of cash dividends, and dividend reinvestment cannot be selected. (2) Since the fund's Class A fund shares do not charge sales service fees, and Class C fund shares charge sales service fees, the distributable profits corresponding to each fund share category will be different. Each fund share in the same category of the Fund enjoys the same distribution right. (3) The bank transfer or other formalities incurred during the income distribution shall be borne by the investors themselves. When the investor's cash dividend is less than a certain amount, which is not enough to pay for bank transfer or other formalities, the fund registration institution may automatically convert the investor's cash dividend into fund shares according to the ex-dividend unit net value. (4) The fund's income is distributed at most 12 times a year, and the proportion of each fund's income distribution is not less than 5% of the distributable income. (5) After the fund income distribution, the net value of each fund share cannot be lower than the face value, that is, the net value of the fund share on the base date of fund income distribution minus the income distribution amount of each fund share cannot be lower than the face value. (6) The time from the fund dividend payment date to the income distribution benchmark date (i.e. the deadline for calculating the distributable profit at the end of the period) shall not exceed 15 working days. (7) Where laws, regulations or regulatory agencies provide otherwise, such provisions shall prevail. Performance benchmark

CITIC Standard & Poor's Convertible Bond Index Yield ×45%+ China Bond Corporate Bond Total Price Index Yield ×45%+ China Bond Bond Total Index Yield ×1% Risk-return Characteristics

This fund is a bond fund, belonging to a lower risk variety of securities investment funds, with higher risk and expected return than money market funds and lower than hybrid funds and equity funds.