Investment Strategy

1. Large assets allocation strategy

The fund will take active asset allocation strategy to track the expected return of each asset class and decide the allocation ratio based on factors such as macro-economics, fiscal policy, monetary policy, industrial policy and market liquidity, etc.

2. Stock investment strategy

The fund will take active stock selection strategy combining the “top-down” sector allocation strategy and “bottom-up” stock picking strategy.

1)    Definition of the Universe Connection

The fund mainly invests in internet related industries, transition industries riding on internet development and other industries relying on Big Data and internet thinking.  

2)    Stock selection

Target stocks are selected by qualitative indicators and quantitative indicators.

3. The investment strategy of SH-HK stock connect program

The fund will invest Hong Kong listed stocks through SH-HK stock connect program. QDII quota will not be used.

4. The investment strategy of fixed return investment tools

The fund take the top-down strategy to determine the duration of the fixed income portfolio, and take the bottom-up strategy to select single bonds to build up the fixed income portfolio.

First, the fund will closely monitor the onshore and offshore economic trend and the national fiscal and monetary policies, forecast the future interest rate movement, and determine the duration of the investment portfolio.

Second, Building and adjusting a fixed income portfolio is a top down process. It involves the evaluation of the value-determination factors such as bond yield, volatility, tenor, coupon, tax treatment, liquidity, credit rating and the structure of the bond holders. At the same time, the fund will use the quantitative analysis and strict investment management policy to manage the risk. The risk will be controlled at a reasonable level by considering the duration, average credit rating, concentration indicator. With strict risk control, the fund targets to achieve a higher return by executing various active investment strategies.

5. The investment strategy of Index Futures

The fund may participate in index futures. According to the risk management policies, the fund will choose to invest in those liquid, active futures contracts. In order the manage the overall risk of the portfolio, The fund will hedge in the futures market by analyzing the trend of equity market and futures market.

6. Other financial tools investment strategy

Under the rules of law, the fund will cautiously use warrant and other financial tools to manage the fund’s portfolio in order to improve investment efficiency, to supervise the level of risk of the portfolio achieving the fund’s goal better.

Benchmark

55% CSI 300 index + 45% SSE Gov bond index

Risk-return profile

This fund is an active hybrid fund with higher expected risk and higher expected return than bond fund and money market fund, lower expected risk and lower expected return than equity fund.