Core Viewpoint - The company emphasizes the importance of providing investors with a sense of gain, happiness, and security, which is fundamental to its mission as a professional asset management institution and its role in serving the real economy and promoting common prosperity [2] Group 1: Business Strategy - The company has established a development strategy focused on "equity as the foundation, fixed income as the pillar, and index enhancement as a specialty," aiming to create a product matrix that caters to different risk preferences and diverse investment needs [3] - As of the end of Q2 this year, the company's public asset management scale has surpassed 10 billion, marking a new stage of development [3] - The company ranks 22nd in absolute returns for equity funds over 10 years and 40th over 5 years, according to data from Guotai Junan Securities [3] Group 2: Fixed Income Investment - Fixed income investment is a key pillar for the company, which has developed products like Fuyanda Fuli Pure Bond and Fuyanda Enhanced Yield Bond, leveraging its strong credit research capabilities and city investment bond strategies [4] - The company ranks 15th in absolute returns for fixed income funds over 7 years and 27th over 3 years [4] Group 3: Technology Empowerment - The company is leveraging AI and big data to enhance research and investment efficiency, integrating its index and active management teams for resource sharing and capability complementarity [5] - The quantitative team supports both quantitative products and active management teams by identifying excess return opportunities through data analysis [5] - The company has implemented a market-oriented, human-centered, and long-cycle research and investment system reform to cultivate talent internally while also attracting external talent [5][6] Group 4: Investor Trust and Fee Reduction - The company supports the industry trend of reducing fees to benefit investors, planning to offset costs through a "volume compensates for price" strategy while enhancing product performance and service quality [8] - The company has invested 150 million of its own funds to co-invest in equity funds and 350 million in fixed income products, aligning the interests of executives and fund managers with those of investors [8]

Core Viewpoint - Small-cap index enhancement products have shown remarkable excess returns this year, outperforming the CSI 300 index significantly [1][3]. Group 1: Market Performance - The $1000 ETF Enhancement (SZ159680) and the CSI 2000 Enhancement ETF (SZ159552) have outperformed the CSI 300 by approximately 10% and 24% respectively this year [1]. - As of the recent trading session, both ETFs recorded gains of 1.07% and 0.88%, continuing to outperform the CSI 300 [1]. Group 2: Reasons for High Excess Returns - The active performance of small-cap stocks is attributed to a favorable market environment, with indices like CSI 2000 and CSI 1000 showing high growth potential and short-term elasticity [3]. - Increased market attention and inflow of incremental funds into small-cap stocks have driven their prices higher [3]. - Quantitative strategies employed in index enhancements favor "high-low cut" reversal approaches, leading to higher excess returns during fast market rotations, which have been prevalent this year [3]. - Continuous liquidity easing, exemplified by the central bank's recent 1 trillion yuan reverse repurchase operation, benefits small-cap tech companies, suggesting potential for continued strong performance [3]. Group 3: Performance Metrics - The $1000 ETF Enhancement has achieved a 34% increase over the past year, outperforming the CSI 300 by nearly 27% and the benchmark by over 14% [5]. - The CSI 2000 Enhancement ETF has shown even more impressive growth, with a 23% increase this year and a total rise of 65% since September 2022, indicating strong upward momentum [5]. Group 4: Long-term Growth Potential - The long-term growth potential of index enhancements is closely tied to the growth prospects of the underlying index constituents, which are predominantly small and medium-sized tech companies [6]. - The CSI 1000 index includes 147 national-level specialized "little giant" enterprises, a higher proportion than that of the CSI 300 and CSI 500 indices [6]. - Key industries represented in the top five sectors of the CSI 1000 index include electronics (14.7%), pharmaceuticals (10.6%), and computer technology (8.1%), collectively accounting for nearly 48% of the index [6]. Group 5: Future Outlook - The year 2025 is anticipated to be a period of rapid development for emerging industries such as AI and robotics, presenting significant growth opportunities for many small and medium-sized enterprises [8]. - Index enhancements are expected to exhibit stronger explosive growth compared to traditional indices, with projections indicating that excess returns may reach new highs by year-end [8].