Fund Overview

Investment Strategy

1. Large assets allocation strategy: In the large assets allocation level, the fund mainly analyze macroeconomics, fiscal policy and capital market. This provide a thorough understanding of the stock and bond market. And along with the change of the market risk, the ratio of large assets will be changed to optimize the investment portfolio.

2.  Stock investment strategy:

(1) definition of the innovationIn the fund, innovations from a company are multiple, include better company systems, advance in technology, innovative product, new process, management innovation, new business model and new demand. In the capital market, an innovative company will have great advantages. Its stock price will keep growing along with the performance of the company. After analyze the real time data and tracking the reason behind such innovations, innovative companies as an important part of the stock investment will give investor a very high return.

(2) The pick of individual stockFund manager will systematically analyze the innovative companies , comprehensive analyze the investment value and growth ability, determine the stock investment target and build a portfolio.

3.  The investment strategy of fixed return investment tools:

The investment into bonds, the money market and the asset backed securities is based on the fund's need for liquidity management and strategic investment. The purpose of the investment is to ensure the fund’s asset liquidity and to use the fund’s asset to increase the investment returns effectively.

4. Other financial tools investment strategyUnder 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.

Investment Process

1. Investment Decision Committee(IDC) make major investment decisionIDC hold regular and irregular meeting, make major strategy and asset allocation decisions.

2. Research Department is responsible for investment research and analysisMacro research member make research paper to advice on the fund’s allocation on stock, bonds and cash. Research paper is written base on the studying of other securities firms, funds’ report, visiting government’s research and decision department, studying of economic trend, economic policy (monetary policy, fiscal policy, regional and industry policy), important technology advance.

3. Fund manager team make executionFund manager team will make decision on the stock market through the understanding of macroeconomics and industry development and other financial tools. At the same time, manger team’s advice will be combined with quantitative model and researcher’s report to form investment plan and handed to Investment decision committee. The detailed investment will be made base on the Investment Decision Committee’s decision.After the committee exam the investment portfolio plan, fund manager will then take the specific investment order to the trading department. The trader will make investment base on the specific investment decision.

4. Performance EvaluationThe evaluation will base on the following four criteria: risk evaluation, performance evaluation, risk-adjusted performance evaluation and performance contribution analysis.

5. Internal ControlInternal Control Committee, supervisor, vice general manager and internal control audit risk management department are responsible for the establishment and execution of the internal control system.