Is the S&P BRIC Index (161714) good? Investment Objectives

This fund adopts an index investment method, and strives to achieve effective tracking of the underlying index through investment discipline constraints and quantitative risk management, and obtain returns similar to those of the underlying index. The fund's control goal is that the annual tracking error between the fund's net return and the underlying index's return does not exceed 6. Investment philosophy

The good economic development prospects and huge market potential of the BRIC countries highlight their investment value. Index investing can provide good long-term market returns at a lower cost. By tracking the S&P BRIC 40 Index, this fund seeks the average return rate of the four emerging markets (Brazil, Russia, India and China) represented by the underlying index, providing investors with opportunities to participate in the economies of the BRIC emerging economies. The investment opportunities generated during the rapid growth process can realize the long-term appreciation of assets. Investment Scope

This fund mainly invests in financial instruments with good liquidity in the global securities market, including equity securities such as ordinary shares, preferred shares, depositary receipts; bank deposits, transferable certificates of deposit, repurchase Money market instruments such as agreements and short-term government bonds; fixed-income securities such as government bonds, corporate bonds, and convertible bonds; and funds, ETFs, financial derivatives, and other financial instruments licensed by the China Securities Regulatory Commission. If laws, regulations or regulatory agencies allow other varieties of this fund in the future, the fund manager may include them in the investment scope after performing appropriate procedures while controlling tracking errors. On the premise of ensuring liquidity, the Fund's cash positions can be stored domestically to meet the needs of fund redemption, payment of management fees, custody fees, handling fees, etc., and can invest in money market instruments. Investment Strategy

At least 80% of the assets of this fund adopt the complete replication method for index investment, that is, an index investment portfolio is constructed based on the S&P BRIC 40 Index constituent stocks and their weights, and the index investment portfolio is constructed based on the underlying index constituent stocks. Adjust accordingly according to changes in its weight. When a sufficient number of stocks cannot be obtained due to special circumstances, the fund manager will use optimization methods to construct the individual equity weight ratio of the optimal investment portfolio in order to approximate the performance of the target index as much as possible. 1. Stock investment strategy This fund seeks to fully invest fund assets in the stock market as much as possible. The proportion of the basic capital in equity assets such as stocks shall not be less than 90% of the fund assets, and the proportion of assets invested in the underlying index component stocks and alternative component stocks shall not be less than 80% of the fund assets. (1) Stock portfolio construction principles The proportion of assets of the underlying index constituent stocks and alternative constituent stocks in the fund assets shall not be less than 80%. The Fund will adopt a complete replication method to copy the index for investment, that is, according to the standard The P&P BRIC 40 Index constituent stocks and their weights construct an index investment portfolio, and are adjusted accordingly based on changes in the underlying index constituent stocks and their weights. (2) Construction and adjustment of stock portfolio. During the period of establishing a position, the Fund will gradually buy each component stock of the S&P BRIC 40 Index according to its benchmark weight. On the premise of striving to minimize the tracking error, the Fund can take Appropriate methods to reduce purchase costs. When encountering the following situations, the fund manager can make appropriate adjustments to the index investment part according to the specific conditions of the market in order to achieve effective control of tracking errors: a) When the underlying index component stocks are expected to be adjusted; b) The underlying index When component stocks undergo corporate actions such as splits, stock splits, additional issuances, dividends, mergers and acquisitions; c) When index component stocks have liquidity problems or may be suspended or delisted; d) Other factors that affect index replication. The Fund's index portfolio is adjusted on a regular and irregular basis. 1) Regular adjustments The indexed investment portfolio constructed by this fund will be regularly adjusted based on the adjustments to its component stocks in the S&P BRIC 40 Index that is tracked. Within one month before the announcement of the regular adjustment information of the target index constituent stocks, the Fund will decide whether to make early adjustments or post-event adjustments based on the analysis and forecast of the adjustment plan and the analysis of the impact of the adjustment of constituent stocks on stock prices while maintaining a small tracking error. The strategy is to increase holdings of stocks that may enter the target index and eliminate stocks that may be adjusted out of the target index.

However, taking into account the various circumstances of actual investment operations, we will appropriately participate in the investment of financial derivatives. The investment strategy of financial derivatives mainly includes: (1) Using the characteristics of cross-market transactions of financial derivatives to reduce investment restrictions, Trading holidays and time differences are a drag on tracking indices. (2) Use the leverage of financial derivatives to reduce tracking errors that may be caused by cash positions or the trading liquidity of certain constituent stocks; (3) Use financial derivatives to hedge tracking errors caused by fluctuations in exchange rates in some foreign exchange markets; (4) Appropriately use the holding income of the financial derivative product portfolio to cover certain fund fixed expenses. The Fund's investment in financial derivatives will strictly comply with laws, regulations and relevant regulations of regulatory agencies. Dividend Distribution Policy

Fund income distribution refers to the proportional distribution of the fund’s distributable income according to fund shares in accordance with regulations. 1. Fund income is distributed in the form of cash or dividend reinvestment. The holders of fund shares registered in the registration system can choose the income distribution method on their own. If the fund share holder has not made a choice in advance, the default dividend method is It is a cash dividend; if you choose to reinvest the dividend, the cash dividend will be automatically converted into fund shares for reinvestment based on the net value of the fund shares after the ex-dividend date; fund shares registered in the securities registration and settlement system only support the cash dividend method, and investors No other method of dividend distribution can be selected. The specific equity distribution procedures and other relevant matters shall comply with the relevant regulations of the Shenzhen Stock Exchange and China Securities Depository and Clearing Co., Ltd.; 2. Each fund share has equal distribution rights; 3. The fund’s distributable profits are Income distribution can only be carried out if it is positive; 4. The net value of the fund shares on the fund income distribution base date minus the income distribution amount per unit fund share cannot be lower than the face value. The fund income distribution base date is the end of the calculation of the fund's distributable profits. 5. Under the premise that the relevant fund dividend conditions are met, fund income will be distributed up to 12 times a year; the income distribution ratio of each fund share shall not be less than 20% of the distributable profit of each fund share on the income distribution base date; 6 , The time between the fund dividend payment date and the income distribution base date shall not exceed 15 working days; 7. Investors’ cash dividends and fund shares formed by reinvestment of dividends are rounded to the second decimal place, resulting in errors The losses shall be borne by the fund property, and the income generated shall belong to the fund property; 8. If laws, regulations or regulatory agencies provide otherwise, such provisions shall prevail. Performance comparison benchmark

S&P BRIC 40 Total Return Index (Samp; PBRIC40 Index (NetTR)) return risk and return characteristics

This fund is a passively managed index fund. The investment direction is the component stocks and alternative component stocks of the S&P BRIC 40 Index. It is a type of securities investment fund with higher risk and return expectations. Its expected risk and return levels are higher than bond funds and hybrid funds. Moreover, this fund mainly invests in emerging markets represented by the BRIC countries, and its risk and return levels are higher than those of funds investing in overseas mature markets.