Market volatility intensifies; investment foundations must be more "solid" — 【Zhongtai Stable 90-Day Hold Bond】 Ten Questions and Answers

Ask AI · How can the triple shield mechanism safeguard returns during market volatility?

1

What assets does this fund buy?

This fund is a pure fixed-income fund. It does not invest in stocks, convertible bonds (except for the pure fixed-income portion of convertible bonds with separated trading of the pure fixed-income part), or exchangeable bonds. The fund invests in bond assets at a ratio of no less than 80% of its fund assets, and it invests in AA+ and above high-quality credit bonds to strictly control credit risk, avoid credit downgrades, and pursue long-term stable returns. It is a top choice for idle cash wealth management and as core holdings for asset allocation.

2

Why buy a pure fixed-income fund?

Pure fixed-income funds have the characteristics of being far from stock market swings, with relatively lower risk, and they are an investment product of “relatively lower overall volatility with a favorable long-term outlook.”

Taking the pure fixed-income fund index as an example, in the past 11 years, the index’s annual growth rates have been positive every year, with an annualized growth rate of 3.63%. It has the characteristics of being far from stock market fluctuations and having relatively lower risk. In an environment of loose monetary policy and continuously declining deposit interest rates, pure fixed-income funds—thanks to their return potential and steady characteristics—can still serve as an important allocation tool for stable investors to address “asset scarcity” and achieve the preservation and appreciation of wealth.

Note: Pure fixed-income bond fund index code: 930609.CSI. Data source: Wind. The statistical period is from January 1, 2015 to December 31, 2025. The data period is relatively short, so it cannot reflect all stages of market operations. Under different market scenarios, investors’ investments may not be consistent with the conclusions above. Investors should make prudent decisions. Past performance of the index does not represent the future performance of this fund and does not constitute a guarantee of fund investment returns or any investment advice. Funds have risk; investing requires caution.

3

Is now a good time to invest in bond funds?

Bond funds are suitable investment products for the long term. For long-term investors, it is generally not necessary to “time the market.” Since pure fixed-income funds are far from stock market volatility, a long-term allocation to pure fixed-income funds helps improve the risk-resilience of the investment portfolio.

From the perspective of asset allocation, for stable investors, even when the stock market performs strongly, it is generally difficult to put all assets into the stock market. Therefore, in a complete investment portfolio, bonds always have their place. Returns may differ across different stages, but the function remains the same—like the “calm faction” in a bull market: not noisy, but more steady and grounded.

4

What is the allocation approach of this fund?

For this fund, it will actively and selectively choose high-quality credit bonds as the core “base holding” portion, striving to maintain a relatively high portfolio static yield. On the other hand, it will actively participate in trading across cycles: based on the rotation of instruments and changes in the yield curve shape, it selects different maturities and instruments for trading across cycles to enhance returns for the portfolio. It will dynamically adjust the allocation position and trading position ratios according to market conditions, and carry out forward-looking liquidity management. Using the portfolio duration as the main lever for offense or defense, it adopts an appropriate leverage ratio. It will make good use of hedging tools such as Treasury futures to strictly control portfolio drawdowns and, to the extent possible, achieve a steady upward trend in the account’s net asset value.

Note: This fund’s investment and operation strictly follow the requirements of the contract. The strategies mentioned in the materials may be adjusted according to changes in market conditions and are provided for reference only.

5

How does this fund control downside risk?

This fund mainly constructs multiple “shield layers” from three aspects to strictly control downside risk:

First shield: Select bonds carefully to strictly control credit risk

With the premise of maintaining relatively good asset liquidity, this fund conducts in-depth fundamental analysis of individual bonds. The credit ratings of actively invested credit bonds (including asset-backed securities) are no lower than AA+.

Second shield: Flexibly control portfolio duration to reduce volatility

When the overall expected market interest rate level rises, this fund will appropriately shorten the portfolio duration to avoid capital losses caused by the risk of falling bond prices.

Third shield: Make good use of trading tools to hedge risks

It uses Treasury futures contracts with good liquidity and active trading. Through research on the trends of market operations, it carries out hedging operations using strategies such as hedging and other hedging techniques to hedge market risks.

Note: This fund’s investment and operation strictly follow the requirements of the contract. The strategies mentioned in the materials may be adjusted according to changes in market conditions and are provided for reference only.

6

What does the fund manager think about the outlook?

The price level is a key focus for the 2026 market. Whether CPI can remain positive under the influence of core CPI, and whether PPI can continue its rebound trend, are still uncertain and require ongoing observation. Considering that the downside risks in fundamentals have not yet been eliminated, the policy backstopping intention in the first half of 2026 may be relatively strong. Monetary policy still needs to coordinate with fiscal policy to exert strength. Monetary policy still has room for further reserve ratio cuts and interest rate cuts, and it is expected that liquidity will remain loose.

It is expected that in 2026, the yield of 10-year Treasury bonds will have a relatively high probability of trading within a range with frequent fluctuations. There is no risk that interest rates will rise in an upward trend. However, a market pullback at certain stages is a relatively good opportunity for entry. That said, it is also necessary to guard against the risk that an improvement in market risk appetite could temporarily suppress the bond market.

Note: The strategies mentioned in the materials may be adjusted according to changes in market conditions and are provided for reference only; they do not serve as an investment basis.

7

Who is this fund suitable for?

1) Investors with low risk appetite

Investors with low risk appetite who do not want to bear large fluctuations, and who are accustomed to buying traditional wealth management products or hope for idle cash wealth management and to enhance returns.

2) Investors who expect to enhance returns

Investors who are not satisfied with money market fund returns and want to strive for enhanced returns while keeping risk under control.

3) Investors with portfolio allocation needs

In a low interest-rate environment, pure fixed-income funds become an important tool to fill the supply-and-demand gap in stable wealth management products. They may be more suitable to serve as core holdings for medium- to long-term investment portfolio allocation. By holding steadily over the long term, the goal is to seek enhanced returns.

8

Who will serve as the proposed fund manager for this fund?

The proposed fund manager for this fund is Shangyuan Bo. He is currently the deputy general manager of the Public Fixed-Income Investment Department at Zhongtai Securities Asset Management. He has a master’s degree in finance from Shanghai University of Finance and Economics. Starting in 2006, he served in roles including a trader in wealth management business at Shanghai Bank, an investment manager, a fixed-income investment manager at Guotai Junan Asset Management, a fixed-income investment manager at Zhongtai Securities Asset Management, the deputy general manager of the Financial Markets Department, and the deputy general manager of the Fund Business Department. He has experienced the transition between bull and bear markets, has extensive investment experience, and adheres to a principle of strictly controlling risk to help unit holders achieve steady progress and winning outcomes.

Shangyuan Bo currently manages three pure fixed-income funds. Historical performance is as follows:

Note: Performance data source: the fund’s periodic reports. Drawdown data source: Zhongtai Asset Management. It has not undergone custodian review; it is for reference only. All above statistical data are as of 2025.12.31. From inception to 2025.12.31, for Zhongtai Blue Moon Short-Term Bond A, among a total of 1,635 trading days, there were 1,508 trading days in which the cumulative net asset value per unit increased or remained stable. Statistical scope: if, compared with the net asset value per unit of the previous day, the cumulative net asset value per unit of shares on the day shows a relative increase or remains unchanged, it is counted as an increase or remaining stable. Past performance does not represent future performance. Funds have risk; investors must be cautious.

9

What are the basic elements and fees for this product?

**In addition, the fees for this product are as follows:
**

Note: For each unit of fund shares, this fund sets a minimum holding period of 90 days. Redemption is permitted on or after the expiration date of the minimum holding period (including the day of expiration of the minimum holding period). No redemption fee is charged upon redemption.

10

Can you introduce Zhongtai Securities Asset Management?

Zhongtai Securities (Shanghai) Asset Management Co., Ltd. (abbreviated as “Zhongtai Securities Asset Management”) was established in 2014. It is a subsidiary of Zhongtai Securities focused on the asset management business under Zhongtai Securities. It carries out securities asset management and the management business of publicly offered securities investment funds. It is also a member of the China Insurance Asset Management Association and has the qualification as an investment manager for insurance funds.

As one of the mainstream domestic professional broker-based asset management companies, as of June 30, 2025, the scale of Zhongtai Asset Management’s asset management business was RMB 1057.51 billion (data source: Zhongtai Securities Asset Management). The company puts the interests of unit holders first and has excellent investment performance. As of December 31, 2025, in the past six years, its active equity investment management returns ranked 6/89, and in the past six years, its active bond investment management returns ranked 4/91.

Note: The ranking list of fund managers’ active equity investment management capabilities is produced by Galaxy Securities. The statistical method uses a broad scope + scale-weighted average. The broad scope includes: the stock investment minimum stipulated in the fund contract is greater than or equal to 80%; the stock investment minimum stipulated in the fund contract is greater than or equal to 60%; the stock proportion value in the performance comparison benchmark is greater than or equal to 50%; and the actual stock investment proportion value is greater than or equal to 60%. The statistical period is 2020.01.01-2025.12.31. The ranking list of fund managers’ active bond investment management capabilities is produced by Galaxy Securities. The statistical method uses a narrow scope + scale-weighted average. The narrow scope includes the pure fixed-income funds specified in fund contracts, namely classification pure fixed-income bond funds, including long-term pure fixed-income bond funds, medium- and short-term pure fixed-income bond funds, short-term pure fixed-income bond funds, and pure fixed-income bond funds (amortized cost method). The statistical period is 2020.01.01-2025.12.31. Past performance does not represent future returns.

Risk Disclaimer:

The fund manager undertakes to manage and use fund assets based on the principles of honesty, trustworthiness, diligence, and responsibility, but does not guarantee that the fund will definitely generate profits, nor does it guarantee a minimum return. Investing****involves risk, and the fund’s past performance does not represent its future performance. The performance of other funds managed by the fund manager does not constitute a guarantee of this fund’s performance. When investors invest in funds, they should carefully read legal documents such as the fund contract, the prospectus, and the summary of fund product information. The fund manager reminds investors of the principle of “buyers bear full responsibility” for fund investments; investors should choose fund products that are suitable for them according to their own risk tolerance. Funds have risk; investing requires caution. The risk level of this fund is medium-low (R2). The risk rating is based on the manager’s rating; the actual rating shall be based on the rating by the sales institutions. The Zhongtai Stable 90-Day Holding Bond-Designated Fund sets the minimum holding period for fund share holders at [90 days]. During the minimum holding period, you will face liquidity constraints due to not being able to redeem or sell the fund shares.

Zhongtai Blue Moon Short-Term Bond A/C was established on 2019.4.26. In the 2021-2025 fiscal years, the growth rates of the net asset value per share were 3.26%/2.95%, 1.94%/1.63%, 2.41%/2.17%, 2.02%/1.98%, and 1.72%/1.55%; during the same period, the performance benchmark results were 2.58%, 2.18%, 2.42%, 2.26%, and 1.54%. On 2021.6.22, the product appointed Zang Jie as the fund manager; on 2021.11.22, Zhang Beibei resigned as the fund manager. On 2023.8.28, the product appointed Cheng Bing as the fund manager. On 2025.4.17, the product appointed Ma Xiao as the fund manager, and Cheng Bing and Zang Jie resigned as fund managers. Currently, the fund managers of this product are Shangyuan Bo and Ma Xiao.

Zhongtai Qing Moon Medium- and Short-Term Bond A/C was established on 2019.8.9. In the 2021-2025 fiscal years, the growth rates of the net asset value per share were 3.65%/3.23%, 2.44%/2.06%, 3.17%/3.01%, 3.00%/2.83%, and 1.57%/1.41%; during the same period, the performance benchmark results were 3.27%, 2.49%, 2.61%, 3.43%, and 1.25%. On 2021.6.22, the product appointed Zang Jie as the fund manager; on 2021.11.22, Zhang Beibei resigned as the fund manager of this product. Currently, the fund managers of this product are Shangyuan Bo and Zang Jie. Zhongtai Stable Weekly Purchase 12-Week Rolling Bond A/C was established on 2021.7.21. In the 2021-2025 fiscal years, the growth rates of the net asset value per share were 1.56%/1.43%, 2.45%/2.14%, 3.91%/3.60%, 3.44%/3.13%, and 1.87%/1.57%. During the same period, the performance benchmark results were 1.78%, 1.99%, 3.95%, 8.07%, and 1.50%. Starting from 2023.2.7, the product appointed Zou Wei as the fund manager, and Tian Yu resigned as the fund manager of this product. On 2025.12.22, the product appointed Cheng Bing as the fund manager, and Zou Wei resigned as the fund manager of this product. Currently, the fund managers of this product are Shangyuan Bo and Cheng Bing.

Zhongtai Stable 30-Day Holding Medium- and Short-Term Bond A/C was established on 2022.10.18. In the 2022-2025 fiscal years, the growth rates of the net asset value per share were 0.12%/0.08%, 3.93%/3.73%, 3.25%/3.03%, and 1.62%/1.41%; during the same period, the performance benchmark results were 0.02%, 2.96%, 3.12%, and 1.54%. On 2024.9.19, the product appointed Ma Xiao as the fund manager; currently, the fund managers of this product are Shangyuan Bo, Zang Jie, and Ma Xiao.

Zhongtai Shuangli Bond A/C was established on 2022.9.27. In the 2022-2025 fiscal years, the growth rates of the net asset value per share were -0.23%/-0.35%, 3.56%/3.14%, 6.67%/6.22%, and 0.80%/0.40%; during the same period, the performance benchmark results were -0.25%, 0.67%, 6.22%, and 0.59%. On 2023.8.28, the product appointed Cheng Bing as the fund manager. On 2023.11.9, Jiang Cheng resigned as the fund manager of this product. Currently, the fund managers of this product are Cheng Bing and Shangyuan Bo.

Zhongtai Shuangxin 6-Month Holding Bond A/C was established on 2025.5.30. In 2025, the growth rate of the net asset value per share was -0.09%/-0.29%, and during the same period, the performance benchmark results were 0.62%. The fund managers of this product are Cheng Bing and Shangyuan Bo. The above data are sourced from the product’s periodic reports. Past data does not represent future returns.