Investment objectives The Fund strives to obtain a total return similar to the target index before deducting various expenses through indexed investment, and pursues the minimization of tracking deviation and tracking error.

Scope of Investment The investment scope of the Fund is financial instruments with good liquidity, including government bonds, central bank bills, local government bonds, financial bonds, corporate bonds, short-term financing bonds, medium-term notes, corporate bonds, asset-backed securities, bond reverse repurchase, bank deposits and other financial instruments allowed by the China Securities Regulatory Commission, but it must comply with the relevant regulations of the China Securities Regulatory Commission. The Fund does not directly buy stocks, convertible bonds, warrants and other assets in the secondary market, nor does it participate in the subscription, issuance and subscription of new convertible bonds in the primary market. 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 is a passively managed index fund. It mainly adopts the methods of stratified sampling replication and dynamic optimization to construct a portfolio with similar risk-return characteristics to the underlying index, thus effectively tracking the underlying index. Under normal market conditions, the Fund strives to control the absolute value of the daily average tracking deviation between the net growth rate and the performance benchmark within 0.2% and the annualized tracking error within 2%. If the tracking deviation and tracking error exceed the above range due to the adjustment of index compilation rules or other factors, the fund manager should take reasonable measures to avoid further expansion of the tracking deviation and tracking error. 1, Bond Index Investment Strategy (1) The bond portfolio construction strategy is mainly divided into three steps: dividing bond levels, screening target portfolio component bonds, and gradually adjusting positions. 1 Classification of bonds The Fund classifies the underlying index constituent bonds according to their different characteristics (such as bond type, remaining maturity, credit rating, etc.). ), and determine the component keys and their weights of each layer according to the principle of stratified sampling. (2) After selecting the constituent bonds of the target portfolio, the Fund adopts methods such as dynamic optimization or random sampling to select a portfolio with good liquidity similar to the overall risk-return characteristics (such as duration and convexity) at all levels (mainly considering the issuance scale, average daily transaction amount, trading days during the period, etc.), and make the investment ratio of the target portfolio approximate to the weight of all levels. 3 gradually open positions The Fund will gradually open positions according to actual market liquidity and market investment opportunities. (2) Adjustment strategy of bond portfolio ① Regular adjustment The fund manager will evaluate the deviation of the overall portfolio and bonds at all levels from the underlying index every month, and adjust the portfolio regularly to ensure that the overall characteristics of the portfolio are similar to the underlying index and reduce tracking errors. (2) Irregular adjustment When a large amount of subscription and redemption, bond dividends in the portfolio, bond maturity, and market volatility occur, resulting in the portfolio deviating from the underlying index, the Fund will comprehensively consider market liquidity, transaction costs, deviation and other factors, and make irregular dynamic adjustments to the portfolio to reduce tracking errors. 2. Other investment strategies In order to make up for the fund expenses to a certain extent, under the premise of controlling risks, fund managers can also use other investment strategies. For example, fund managers can take advantage of arbitrage opportunities between the interbank market and the exchange market, or between the primary and secondary markets of bonds to carry out cross-market arbitrage; You can also use event-driven strategy, that is, arbitrage by analyzing the impact of major events on the pricing of investment targets; You can also use the fair value strategy, that is, by studying the deviation between the bond market price and the model price, you can take corresponding increase or decrease operations; Or use the leverage principle to conduct repurchase transactions.

Dividend policy The income distribution of the Fund follows the following principles: 1. The fund share category fees of this fund are different, and its corresponding distributable income will be different. Each fund share of the same fund category enjoys the same distribution right; 2. On the premise of meeting the dividend conditions of relevant funds, the maximum number of income distributions of the Fund is 65,438+02 times per year, and the distribution ratio of each fund share is not less than 90% of the distributable profit of each fund share on the income distribution base date. If the fund contract takes effect less than 3 months, no income distribution may be made; 3. There are two ways to distribute fund income: cash dividend and dividend reinvestment. For the fund shares registered in the open-end fund account of fund share holders in the registration system, cash dividends 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.; 4. 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; 5. Where laws, regulations or regulatory authorities provide otherwise, such provisions shall prevail.

Debt in Performance Benchmark-New Composite Index

Risk-return characteristics The Fund is a bond index fund, and its expected risk and expected return are lower than those of equity funds and hybrid funds, but higher than those of money market funds.