Core Viewpoint - The report outlines the performance and investment strategy of the Guangfa Juxin Bond Fund for the second quarter of 2025, highlighting its focus on risk control and pursuit of stable long-term returns through active management of bond and equity investments [1][7]. Fund Overview - Fund Name: Guangfa Juxin Bond Fund - Fund Code: 000118 - Total Fund Shares at Period End: 7,983,306,157.93 shares - Investment Objective: To achieve higher current income and long-term returns while maintaining asset liquidity and controlling risks [1][2]. Investment Strategy - The fund employs a top-down qualitative and quantitative analysis approach, assessing macroeconomic conditions, national policies, market liquidity, and valuation levels to determine the allocation between fixed income and equity assets [2]. - The performance benchmark is composed of 85% of the China Bond Total Index (full price), 10% of the CSI 300 Index, and 5% of the Renminbi-denominated Hang Seng Index [2]. Financial Performance - The fund's A-class share net value growth rate for the reporting period was 1.58%, while the C-class share net value growth rate was 1.48%. The benchmark return for the same period was 1.08% [10]. - Historical performance shows that over the past year, the fund achieved a net value growth rate of 8.72%, outperforming the benchmark by 2.94% [4]. Investment Portfolio - As of the end of the reporting period, the fund's asset allocation was as follows: 76.97% in bonds, 18.40% in common stocks, and 8.12% in Hong Kong stocks through the Stock Connect mechanism [9][12]. - The fund's bond holdings include a significant portion of policy financial bonds, valued at 625,106,424.67 RMB, representing 4.96% of the total fund assets [11]. Market Outlook - The bond market is expected to be influenced by liquidity and policy direction, with ongoing monetary easing anticipated to drive bond yields lower. However, significant declines in long-term rates may require additional driving factors [10].