Hwabao WP Fund Management: Comprehensive Investment Products with Strategic Approaches

Title: Overview and Key Features of Hwabao WP Fund Management's Investment Products

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Hwabao WP Fund Management, a leading provider in the Chinese investment landscape, offers a comprehensive range of products tlored to diverse investment needs. Each product under its umbrella is designed with meticulous attention to detl and innovation, ming for optimal returns while managing risk efficiently.

Our Products

• Hwabao WP Listed Money Market Fund: Ideal for short-term liquidity requirements, this fund provides competitive yields backed by the stability of a well-regulated market.

• Hwabao WP Baokang Series Open-ed Securities Investment Fund: Targeting long-term investors seeking steady growth alongside a diversified investment strategy.

• Hwabao WP Selected Service Industry Equity Investment Fund and Hwabao WP Selected Innovation Equity Investment Fund: Specialized funds that focus on sectors experiencing rapid innovation or service industry advancements, catering to specific market demands.

• Hwabao WP Ecology China Equity Investment Fund: A socially conscious investment option for those who prioritize environmental sustnability in their financial decisions.

• Hwabao WP Quantitative Hedge Strategy FundHwabao WP High- Manufacturing Equity Investment Fund, and others like Hwabao WP Quality Life Equity Investment Fund** offer sophisticated strategies that cater to both traditional and modern investment preferences, from quantitative risk management to quality-focused equity investments.

Investment Strategies

Asset Allocation

Our funds employ an active asset allocation strategy, guided by a robust analytical framework:

• Macroeconomic Indicators: GDP growth, economic structure changes, inflation rates CPI, purchasing managers' index PMI, population demographics, and more.

• Macro Policies: Analysis of fiscal and monetary policies impacting the market landscape.

• Market Liquidity Insights: Assessment of supply and demand dynamics in capital markets alongside interest rate levels.

Stock Investment Strategy

Over 80 of equity assets are allocated to manufacturing sector stocks. Selection is based on a dual approach combining qualitative assessments with quantitative metrics:

1. Qualitative Indicators:

   • Industry's future growth potential.

   • Business model effectiveness.

   • Core competitive strengths RD capabilities, marketing prowess, product competitiveness.

   • Corporate governance quality.

2. Quantitative Indicators:

   • Growth indicators: compound annual growth rate of primary business income and profit.

   • Profit indicators: return on equity ROE, return on invested capital ROIC.

   • Value indicators: price-to-earnings ratio PE, price-to-book ratio PB, price-to-cash flow ratio PCF, price-to-sales ratio PS.

Fixed Income Instruments Investment Strategy

The fund management adopts a top-down approach for fixed income, defining portfolio duration based on macroeconomic conditions, monetary policies, and interest rate expectations. A bottom-up is used to identify individual securities through evaluations focusing on return potential, volatility, yield to maturity, coupon rates, liquidity, and credit rating.

Strategies include:

• Interest Expectation: Forecasting future interest trs with implications for portfolio's weighted average duration.

• Valuation Analysis: Comparing intrinsic value of assets versus market price to determine investment opportunities.

• Interest Rate Spread Strategies: Leveraging credit spread, callable vs. non-callable debt instruments' spreads for yield enhancement.

• Swap Strategy: Employing swaps to manage risk exposure while potentially increasing returns without directly managing interest rate risks.

Other Financial Instruments

• Index Futures Management: Utilizing hedging strategies, cash management techniques, and margin position adjustments based on market conditions and investment objectives.

• Stock Options Investment: Integrating fundamental analysis with option pricingfor informed decision-making in equity derivatives trading.

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Declaration

Hwabao WP Fund Management Co., Ltd. is committed to delivering high-quality services through its dedicated team of professionals at the Shangh World Financial Center, located at 100 Century Avenue, Shangh, China 200120. Our contact detls are as follows:

• Tel: +86 21 38505888

• Office Fax: +86 21 38505777

• Hot Line: 400-700-5588

• Customer Service Fax: +86 21 38924555

Visit our website at www.fsfund.comhttp:www.fsfund.com for more detls on our services and offerings.

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This document serves as a brief introduction to Hwabao WP Fund Management's investment products. For detled information and personalized advice, please contact our customer service team or visit our online platform.
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