Core Insights - Huafu Fund has achieved significant performance in its public offerings, particularly in "equity" products, following an upgrade of its "fixed income+" product system and proactive positioning in equity products [1][2] - The fund's strategic focus on artificial intelligence ETFs and humanoid robotics has resulted in impressive returns, with the Huafu Technology Momentum Mixed A yielding over 190% since the market rally began on September 24, 2024 [1] - The artificial intelligence ETF has also performed well, with returns exceeding 150%, and its latest scale approaching 8 billion yuan [1] Group 1: Equity Investment Performance - Huafu Fund has strategically invested in over ten thematic directions, including artificial intelligence, humanoid robotics, innovative pharmaceuticals, semiconductors, military industry, new energy, controllable nuclear fusion, and autonomous driving [1] - The Huafu IoT World Flexible Allocation Mixed A and Huafu Industrial Upgrade Flexible Allocation Mixed A have both achieved returns over 120% since the market rally began [1] Group 2: Fixed Income Investment Strategy - The fund has categorized its "fixed income+" products into different types based on volatility characteristics, setting corresponding return targets and drawdown standards [2] - The Huafu Anxin Bond A, categorized as high volatility, has yielded over 40%, while the Huafu Enhanced Return Bond has achieved over 15% since September 24, 2024 [2] - The Huafu Convertible Bond A, a convertible bond tool, has delivered returns exceeding 48% [2] Group 3: Product Innovation and Investor Engagement - Huafu Fund is exploring regular dividend distribution models to enhance investor satisfaction, with products like Huafu Rongsheng One-Year Holding Mixed and Huafu Jilu 90-Day Rolling Holding Bond having distributed dividends ten times this year [2] - The company's forward-looking strategy in equity and optimization in fixed income products have shown substantial effectiveness [2]

Core Viewpoint - Huafu Fund has demonstrated strong performance in both equity and fixed income products, with many funds achieving significant gains since the market rebound on September 24 last year [1][2][4] Equity Investment - Huafu Fund's proactive positioning in equity investments has led to impressive results, with the Huafu Technology Momentum Mixed A fund rising 218.68% and the AI ETF increasing by 169.76% since last year [2] - The AI ETF has surpassed 8 billion yuan in scale as of October 29, 2023, reflecting strong investor recognition [2] - The fund has strategically invested in over ten thematic directions, including artificial intelligence, humanoid robots, innovative pharmaceuticals, semiconductors, military industry, new energy, controllable nuclear fusion, and autonomous driving [2] Fixed Income Investment - Huafu Fund has categorized its fixed income plus products into different types based on volatility, setting specific return targets and drawdown standards for each category [3] - The Huafu Anxin Bond A fund has achieved a return of 26.84%, ranking in the top 3% of its category, while the Huafu Strengthened Return Bond has returned 9.17%, ranking in the top 9% [3] - The Huafu Convertible Bond A fund has also performed well, with a return of 33.78%, ranking in the top 22% of its category [3] Overall Strategy - The forward-looking strategy in equity and the optimization of fixed income products have proven effective for Huafu Fund [4] - The company aims to continue leveraging its professional research team to create sustainable long-term returns for investors [4]

Core Insights - Huafu Fund's public offerings have shown impressive performance in the third quarter of 2025, with multiple equity and "fixed income+" funds ranking in the top 10% of the industry for investment management capabilities over the past year [1][2] Group 1: Equity Investment - Huafu Fund has strategically focused on artificial intelligence ETFs since 2019, becoming one of the early fund managers to invest in this sector [1] - The Huafu Technology Momentum Fund has concentrated on humanoid robotics since Q4 2023, capitalizing on market opportunities [1] - The Huafu Technology Momentum Mixed A and the artificial intelligence ETF ranked first (1/219) and fourth (4/392) respectively among similar products over the past year [1] Group 2: Fund Performance - The artificial intelligence ETF has surpassed 8 billion yuan in scale as of October 29, 2025, reflecting strong investor interest [1] - Huafu Fund has diversified its product offerings across over 10 thematic directions, including artificial intelligence, humanoid robotics, innovative pharmaceuticals, semiconductors, new energy, and autonomous driving [2] - The Huafu IoT World Flexible Allocation Mixed A and Huafu Industrial Upgrade Flexible Allocation Mixed A ranked in the top 10% of similar products in the past year, focusing on the semiconductor and electronics sectors [2] Group 3: Fixed Income Investment - Huafu Fund categorizes its "fixed income+" products based on volatility characteristics and sets corresponding return targets and drawdown standards [2] - The Huafu Anxin Bond A, positioned as a high-volatility "fixed income+" product, ranked in the top 3% (13/499) among similar products over the past year [2] - The Huafu Enhanced Return Bond, categorized as a medium-volatility "fixed income+" product, ranked in the top 9% (23/266) among similar products [2]

Core Insights - The public fund industry has seen significant growth in fund sizes and asset allocations, particularly in equity and fixed-income products, indicating a shift in investor risk preferences [1][3][4] Fund Size Growth - Many funds have reported substantial increases in net asset values, with some products doubling in size compared to the end of Q1. For instance, the Tongtai Industrial Upgrade Mixed Fund's size grew from less than 10,000 yuan to approximately 145 million yuan by the end of Q2 [2] - The Huafu Convertible Bond Fund's net assets increased by 104.4% from 137 million yuan to 280 million yuan, while the Debang Short-Debt Bond Fund's size rose from 2.8 billion yuan to 6.371 billion yuan [3] Equity Investment Increase - Several equity funds maintained high positions, with some increasing their equity asset ratios. For example, the stock allocation of the Tongtai Industrial Upgrade Mixed Fund rose from 1.62% at the end of Q1 to 90.16% by the end of Q2 [4] - Key sectors for equity investments include specialized and innovative industries, robotics, and financial technology, reflecting a focus on high-quality economic transformation and technological advancement [4][5] Investment Focus Areas - The human-robotics industry is expected to see significant growth, with 2025 projected as a pivotal year for mass production. Fund managers are focusing on high-growth segments within this field [5][6] - The financial technology sector is also highlighted as a key investment area, with expectations of strong performance due to favorable policies and technological advancements [6] Market Outlook - The outlook for Q3 remains optimistic, with fund managers favoring investments in robotics and financial technology, anticipating substantial opportunities in these sectors [6][7]

Core Viewpoint - The report provides an overview of the performance and strategy of the Hua Fu Convertible Bond Fund for the second quarter of 2025, highlighting its investment focus on convertible bonds and the market conditions affecting its performance [2][10]. Fund Product Overview - Fund Name: Hua Fu Convertible Bond Fund - Fund Manager: Hua Fu Fund Management Co., Ltd. - Fund Custodian: China Construction Bank Co., Ltd. - Total Fund Shares at Period End: 269,345,409.32 shares - Investment Objective: To achieve long-term stable appreciation of fund assets through active investment in convertible bonds while strictly controlling risks [3][4]. Financial Indicators and Fund Performance - For the period from April 1, 2025, to June 30, 2025, the net value growth rate for Hua Fu Convertible Bond A was 4.77%, while for Hua Fu Convertible Bond C, it was 4.69%. The benchmark return for the same period was 2.79% [12]. - The fund's performance over the past three months showed a net value growth rate of 4.77% for A shares and 4.69% for C shares, outperforming the benchmark [5][12]. Investment Strategy and Market Conditions - The fund's investment strategy focuses on identifying high-quality convertible bonds with favorable risk-return profiles, emphasizing a cautious approach to high-volatility assets [10][11]. - The macroeconomic environment in Q2 2025 showed resilience, with manufacturing PMI rising to 49.7% in June, indicating a recovery in market sentiment [9][10]. - The convertible bond market demonstrated its advantageous option-like characteristics, with the China Convertible Bond Index rising by 3.77% during the quarter [10]. Investment Portfolio Report - At the end of the reporting period, the fund held 94.76% of its total assets in bonds, with no investments in stocks or asset-backed securities [13]. - The fund's top ten securities included issuers that had faced regulatory scrutiny in the past year, but the investment decisions complied with legal and contractual requirements [14]. Fund Share Changes - The total shares for Hua Fu Convertible Bond A at the beginning of the period were 97,258,939.59, with total subscriptions of 108,364,057.23 and redemptions of 10,775,565.63, resulting in a total of 194,847,431.19 shares at the end of the period [6].

Core Viewpoint - The "fixed income +" funds are experiencing a resurgence, with significant net subscriptions and a return to a total scale of over 2 trillion yuan for the first time since 2024 [1][2]. Group 1: Market Performance - As of the end of the first quarter, there were 2,161 "fixed income +" funds with a net subscription of 49.9 billion units, marking a 6.7% quarter-on-quarter increase [1]. - The CSI Convertible Bond Index achieved a year-to-date increase of 3.08%, outperforming the pure bond fund index, which only rose by 0.38% [2]. - Specific funds managed by Huafu Fund, such as Huafu Convertible Bond A and Huafu Anxin A, reported year-to-date returns of 6.13% and 6.45%, respectively, with one-year returns of 11.49% and 11.09% [2]. Group 2: Investment Strategy - The strong performance of "fixed income +" products is attributed to several factors, including the optimization of supply and demand for convertible bonds and positive contributions from bond investments [3]. - The investment strategy emphasizes a systematic approach, focusing on macro hedging and risk parity to manage market volatility and control drawdowns [4]. - The strategy also includes a diversified asset allocation, targeting structural opportunities in AI technology, new consumption, and value dividend stocks [5]. Group 3: Fund Management Insights - Fund manager Dai Hongyi highlights the importance of disciplined investment strategies, including clear risk budgets and dynamic safety margins to manage risk exposure [4][6]. - The investment approach is inspired by Bridgewater's all-weather strategy, tailored to the Chinese market, utilizing macroeconomic indicators to construct diversified asset portfolios [6]. - Huafu Fund has developed a robust team with extensive experience in product creation and investment management, contributing to its growth and innovation in the asset management industry [7].