ICBC(SH:601398) Zheng Quan Zhi Xing·2025-08-27 15:31Core Viewpoint - The report highlights the performance and management strategies of the Penghua Aerospace and Defense Index Fund (LOF), emphasizing its alignment with the aerospace and defense sector's growth and the fund's investment strategies aimed at minimizing tracking errors against its benchmark index [1][9][10]. Fund Overview - Fund Name: Penghua Zhongzheng Aerospace and Defense Index Securities Investment Fund (LOF) [2] - Fund Management Company: Penghua Fund Management Co., Ltd. [2] - Fund Custodian: Industrial and Commercial Bank of China [2] - Fund Operation Type: Listed open-end fund (LOF) [2] - Total Fund Shares at Period End: 2,789,202,580.73 shares [2] Investment Strategy - The fund employs a passive index investment strategy, aiming to closely track the benchmark index with a daily tracking deviation of less than 0.35% and an annual tracking error of less than 4% [2][3]. - Adjustments to the investment portfolio are made based on changes in the benchmark index's constituent stocks and their weights, as well as market conditions [3][4]. Financial Performance - The fund's A share net value growth rate for the reporting period was 9.07%, while the benchmark growth rate was 8.96% [10]. - The C share net value growth rate was 9.01%, also compared to the benchmark growth rate of 8.96% [10]. - The aerospace and defense index increased by 9.33% during the first half of the year, outperforming the Shanghai Composite Index, which rose by 2.76% [9]. Market Outlook - The defense and military industry is expected to continue gaining attention, driven by the completion of the "14th Five-Year Plan" and the initiation of the "15th Five-Year Plan," which are anticipated to lead to a new economic cycle [10][12]. - The report indicates that military trade is likely to drive a revaluation of military assets, transitioning from thematic investments to order-driven growth [10][12].