Investment Objective

Employ enhanced index investing to realize moderate gains over the MSCI China A-Share Index, with regular yield distribution.

Investment Strategy

    1. Asset Allocation: The Fund aims to invest approximately 95% of assets in stocks, but given the relative lack of risk hedging instruments on Chinese securities the Fund may occasionally make appropriate readjustments to adapt to changing market conditions.

    2. Stock Investments: The portfolio will be based on the relative weighting and composition of stocks in the MSCI China A-Share Index, with limited differences in composition and weighting decided on by the portfolio manager. The fund manager will regularly check and adjust the portfolio to keep the tracking difference between the portfolio and its benchmark within a tolerable range.

    3. Other Investments: The Fund may invest in other financial instruments approved by the CSRC to lower risk and boost returns.

Dividend Distribution

Investors may choose to either receive a cash dividend or to reinvest dividends back into the Fund (on the date of distribution). The Fund will assume the investor desires the cash dividend unless he/she explicitly chooses to have the dividend reinvested back into the Fund.

Benchmark

0.95*MSCI China A-Share Index Yield Rate + 0.05*Inter-bank Deposit Rate.