Group 1 - The article highlights the increasing market attention on free cash flow strategy products, particularly in a low-interest-rate environment, with Jin Ying Fund launching the Jin Ying CSI All Share Cash Flow Index Fund on August 18 to provide investors with a tool for investing in high-quality cash flow companies [1] - Warren Buffett refers to free cash flow as "the real gold and silver of value investing," emphasizing that it better reflects a company's sustainable cash generation ability compared to accounting profits. Free cash flow serves as the basis for dividend distribution and is considered "unrealized dividends," enabling companies to reward investors and supporting high dividend yields [1] - The CSI All Share Free Cash Flow Index selects 100 "cash cow" companies from non-financial and real estate sectors based on liquidity, industry, and profit quality, offering investors superior equity asset investment choices. Since the base date of December 31, 2013, the CSI Cash Flow Total Return Index has increased by 659.18%, with an annualized return of 19.64%, demonstrating strong medium to long-term allocation value [1] Group 2 - The Jin Ying CSI All Share Cash Flow Index Fund uses a performance benchmark of 95% of the CSI All Share Free Cash Flow Index return plus 5% of the after-tax bank demand deposit rate, employing an index investment strategy to closely track the underlying index while minimizing tracking deviation and error [2] - The fund is managed by Sun Qianqian, Deputy General Manager of the Absolute Return Investment Department at Jin Ying Fund, who has 14 years of experience in the securities industry and 6 years in public fund management. Her current managed products focus on high dividend safety and enhance returns through cash flow-based quantitative indicators in stock selection [2]

Core Viewpoint - The upcoming launch of the Jin Ying CSI All Share Free Cash Flow Index Fund is gaining attention from institutional and individual investors, focusing on free cash flow as a core screening factor to identify industry leaders and stable profit companies with long-term return potential [1][2]. Group 1: Free Cash Flow Factor Advantages - The fund manager, Sun Qianqian, emphasizes her extensive experience in high dividend and quantitative investment strategies, which have consistently outperformed the CSI Dividend Index and achieved positive quarterly returns [2]. - The combination of traditional dividend strategies with cash flow factors significantly reduces the risk of falling into "high dividend traps" while selecting companies with strong cash generation capabilities and high profit quality [2][5]. Group 2: Market Timing and Index Performance - The launch of this product is timely, as dividend and free cash flow indices are seen as "long slope thick snow" tracks, providing both offensive and defensive characteristics [3]. - Historical performance data shows that the CSI All Share Free Cash Flow Index has had positive returns in most years over the past 11 years, indicating potential for significant rebound in the second half of the year, especially in a liquidity-rich environment [3][4]. Group 3: Focus on Strong "Self-Sustaining" Companies - The index focuses on mature industries with stable profitability, avoiding sectors that require heavy capital investment, and instead targeting companies that can generate stable cash flow without external financing [4]. - Recent trends show an increase in the representation of manufacturing and consumer sectors within the index, with companies in these areas maintaining growth and stable dividends despite macroeconomic challenges [4][5]. Group 4: Long-term Sustainability and Returns - The integration of free cash flow and ROE factors in the quantitative model helps identify truly self-sustaining companies and industry leaders, enhancing the long-term sustainability and authenticity of the investment portfolio [5]. - The combination of low valuations and high-quality components suggests that the free cash flow index has potential for valuation recovery and could achieve dual returns from price appreciation and dividends driven by profit growth [5].