Group 1 - The current macroeconomic environment is characterized by high uncertainty in global capital markets, prompting investors to seek stable and potential alternative assets, particularly those with free cash flow [1] - Free cash flow assets are highlighted for their defensive value and growth potential, as they can provide high dividend potential and support technological upgrades and industry consolidation during recovery cycles [1][2] - Companies that generate stable free cash flow typically exhibit three key characteristics: reliable profit quality, sustainable dividend capability, and solid innovation investment [2] Group 2 - The Guozheng Free Cash Flow Index, launched on December 31, 2012, focuses on "free cash flow rate" and includes 100 companies from various industries, excluding finance and real estate, to ensure a balanced distribution [3] - As of July 15, the Guozheng Free Cash Flow Index has increased by 368.76% since its inception and has shown positive growth for six consecutive years from 2019 to 2024, indicating strong resilience [3][4] - The index's latest PE (TTM) is 11.98 times, which is in the 34.04% percentile over the past decade, suggesting that free cash flow assets are becoming increasingly valuable in the current low-interest-rate environment [4] Group 3 - The demand for free cash flow assets is expected to grow as long-term capital is increasingly directed towards high-quality, sustainable dividend-paying equities, driven by the need for stable investments [4]

Core Viewpoint - The launch of the Changcheng National Securities Free Cash Flow Index Fund aims to capitalize on companies with sustainable free cash flow, which is seen as a key indicator of financial health and long-term investment value [1][3]. Fund Overview - The fund will track the National Securities Free Cash Flow Index, which was established in 2012 and focuses on companies with strong free cash flow rates, excluding the financial and real estate sectors [1][2]. - The fund manager emphasizes that free cash flow is the maximum cash available for distribution to shareholders and creditors after meeting operational and investment needs [1]. Index Characteristics - The National Securities Free Cash Flow Index includes 100 "cash cow" companies, selected based on free cash flow rates, liquidity, industry, and ROE stability [1][2]. - The index covers both dividend-paying and growth industries, with a notable overweight in cyclical sectors like home appliances, oil and petrochemicals, and non-cyclical sectors like automotive and pharmaceuticals [2]. Performance Metrics - The index has shown strong historical performance, achieving positive returns for six consecutive years from 2019 to 2024, with a peak increase of 49.15% in 2021 [3]. - As of the end of 2024, the index's ROE was reported at 12.69%, outperforming other indices such as the CSI Dividend and CSI 500 [2][3]. Future Outlook - The fund is positioned to leverage the increasing importance of free cash flow in the context of China's high-quality economic development, potentially becoming a key vehicle for long-term capital inflows into the A-share market [3].

Group 1 - Multiple public funds are launching new products focused on free cash flow, with the 华夏中证500自由现金流ETF and 长城国证自由现金流指数基金 both starting their offerings on July 16 [1][3] - The 华夏中证500自由现金流ETF has a fundraising cap of 8 billion yuan and allows for quarterly assessments and profit distributions if certain conditions are met [3][4] - The total scale of free cash flow ETFs has exceeded 10.3 billion yuan since the first batch was launched on February 27, with significant interest from various public funds [5][6] Group 2 - As of July 16, there are 40 free cash flow-related index funds in the market, with 24 being ETFs, indicating a growing interest in this investment strategy [6] - The 中证全指自由现金流指数 and 国证自由现金流指数 have annualized returns of 6.49% and 5.69% respectively over the past year, highlighting the performance potential of these funds [7] - The increasing frequency of new free cash flow fund launches reflects a diversification of products and a growing emphasis on free cash flow as a key indicator of a company's financial health [7][8]

Core Viewpoint - The increasing importance of free cash flow strategies in the current macroeconomic environment is highlighted, with a significant rise in the number of funds focusing on this strategy and their total fundraising amount exceeding 16.5 billion yuan [1][2]. Group 1: Free Cash Flow Strategy - Free cash flow is defined as the cash available for distribution after meeting operational and reinvestment needs, providing a more accurate reflection of a company's profitability and financial health compared to net profit [1]. - The free cash flow strategy aims to identify stocks with high free cash flow rates, which are expected to be more resilient in uncertain economic conditions [2]. Group 2: Market Trends and Fund Performance - As of July 7, 2023, there are 30 free cash flow-related index funds established, with ongoing fundraising for additional products, including the Changcheng Guozheng Free Cash Flow Index Fund [1]. - The Guozheng Free Cash Flow Index (980092.CNI) has a free cash flow rate of 13.08% and a return on equity (ROE) of 12.69%, significantly outperforming major indices like the CSI Dividend and CSI 300 [3]. - The index covers 23 primary industries, including consumer goods and cyclical sectors, providing a balanced approach to market fluctuations [3]. Group 3: Historical Performance - Since its inception on December 31, 2012, the Guozheng Free Cash Flow Index has increased by 363.26%, outperforming the CSI Dividend and CSI 300 indices, which rose by 123.56% and 59.88%, respectively [3]. - The annualized returns for the Guozheng Free Cash Flow Index from 2012 to 2025 are projected at 13.45%, compared to 6.84% for the CSI Dividend and 3.94% for the CSI 300 [3].

Core Viewpoint - The "Wealth Great Wall Journey" series by Great Wall Fund aims to enhance capital market knowledge and investor services, focusing on the investment value and opportunities of the National Securities Free Cash Flow Index [1][2] Group 1: Investment Trends - Index-based investment has seen significant growth, driven by policies such as the "Implementation Plan for Promoting Long-term Funds into the Market" and the "Action Plan for Promoting High-Quality Development of Capital Market Index Investment" [1] - Investors are increasingly focused on the financial stability of listed companies, particularly favoring high-quality firms with stable cash flows [1] Group 2: Product Launch - Great Wall Fund is set to launch the Great Wall National Securities Free Cash Flow Index Fund on July 14, which aims to serve as a tool for investors to easily allocate to high cash flow quality companies [2] - The fund manager emphasized that the product's launch is timely, given the ongoing high-quality development of the Chinese economy and the decline in risk-free interest rates [2] Group 3: Ongoing Initiatives - The "Wealth Great Wall Journey" initiative, launched in 2021, has conducted over 7,000 events to facilitate communication between investment institutions and investors [2] - Great Wall Fund is committed to providing valuable and warm services to investors, contributing to the foundation of high-quality development in the capital market [2]