Core Viewpoint - The report provides a comprehensive overview of the performance and management of the Penghua CSI 5-Year Local Government Bond ETF, highlighting its investment strategies, financial metrics, and compliance with regulations. Fund Overview - Fund Name: Penghua CSI 5-Year Local Government Bond ETF - Fund Manager: Penghua Fund Management Co., Ltd. - Fund Custodian: China Merchants Bank Co., Ltd. - Total Fund Shares at Period End: 35,305,910.00 shares [2] - Fund Contract Effective Date: August 23, 2019 [2] - Investment Objective: To closely track the benchmark index with a daily tracking deviation not exceeding 0.25% and an annualized tracking error not exceeding 3% [2]. Investment Strategy - The fund employs a stratified sampling strategy to replicate the benchmark index, focusing on liquidity and credit ratings of the selected bonds [2]. - Alternative strategies may be used when market liquidity is insufficient, ensuring that the replacement bonds closely match the characteristics of the original bonds [2]. - The fund also utilizes leverage strategies to enhance returns by borrowing funds to invest in higher-yielding bonds [2]. Financial Performance - Realized Income for the Period: 83,241,942.55 RMB [3] - Net Profit for the Period: 22,617,018.54 RMB [3] - Weighted Average Fund Share Profit for the Period: 0.6255 RMB [3] - Fund Share Net Value Growth Rate: 0.50% [3] - Cumulative Net Value Growth Rate: 25.78% [3]. Key Financial Metrics - Fund Net Asset Value at Period End: 4,105,838,405.86 RMB [3] - Fund Share Net Value at Period End: 116.2932 RMB [3] - Available Distributable Profit at Period End: 545,787,404.55 RMB [3]. Management Report - Penghua Fund Management Co., Ltd. has been managing assets totaling 1,251.3 billion RMB across 359 public funds as of the report date [4]. - The fund management adheres to strict compliance with regulations and aims to maximize benefits for fund shareholders [5]. Custodian Report - China Merchants Bank has confirmed the accuracy of the financial indicators and net value performance reported, ensuring compliance with legal and regulatory requirements [9].