Investment objectives The Fund adopts an indexed investment method. Through investment discipline and quantitative risk management, we strive to achieve effective tracking of the underlying index and obtain similar returns to the underlying index. The control objective of the Fund is that the annual tracking error between the net return rate of the Fund and the return rate of the underlying index shall not exceed 6%.

Investment Idea The good economic development prospects and huge market potential of BRICS countries highlight their investment value. Indexed investment can get good long-term market returns at lower cost. By tracking the Standard & Poor's BRIC 40 Index, the fund seeks the average returns of the four emerging markets (Brazil, Russian, Indian and China) represented by the underlying index, providing investors with investment opportunities generated by the rapid economic growth of emerging economies in BRIC countries and realizing long-term asset appreciation.

Scope of investment The Fund mainly invests in financial instruments with good liquidity in the global securities market, including equity securities such as common shares, preferred shares and depositary receipts; Bank deposits, negotiable certificates of deposit, repurchase agreements, short-term government bonds and other money market instruments; Fixed-income securities such as government bonds, corporate bonds and convertible bonds; And financial instruments such as funds, ETFs and financial derivatives licensed by China Securities Regulatory Commission. If future laws, regulations or regulatory authorities allow other varieties of the fund, the fund manager can include them in the investment scope after performing appropriate procedures under the premise of controlling the tracking error. On the premise of ensuring liquidity, the cash position of the Fund can be deposited in China to meet the needs of fund redemption, payment of management fees, custody fees and handling fees, and it can also invest in money market instruments.

Investment strategy: At least 80% of the assets of the Fund are indexed by the complete replication method, that is, the index portfolio is constructed according to the constituent stocks and their weights of the Standard & Poor's BRIC 40 Index, and adjusted accordingly according to the changes of the constituent stocks and their weights of the underlying index. When a sufficient number of stocks cannot be obtained due to special circumstances, the fund manager will use the optimization method to construct the optimal stock weight ratio of the portfolio, so as to be as close as possible to the performance of the target index. 1, stock investment strategy The Fund pursues to invest all the fund assets in the stock market as much as possible. The proportion of funds invested in equity assets such as stocks is not less than 90% of the fund assets, and the proportion of assets invested in the underlying index constituent stocks and alternative constituent stocks is not less than 80%. (1) Principle of stock portfolio construction: The assets of the underlying index constituent stocks and the alternative constituent stocks account for no less than 80% of the fund assets. The Fund will copy the index of this part of assets by the complete copy method, that is, the index portfolio will be constructed according to the constituent stocks and their weights of the Standard & Poor's BRIC 40 Index, and the index portfolio will be adjusted accordingly according to the changes of the constituent stocks and their weights of the underlying index. (2) Construction and adjustment of stock portfolio During the opening period, the Fund gradually bought its constituent stocks according to the benchmark weight of the Standard & Poor's BRIC 40 Index. On the premise of minimizing the tracking error, the fund can take appropriate measures to reduce the buying cost. In case of the following circumstances, the fund manager can make appropriate adjustments to the index investment part according to the specific market conditions, so as to effectively control the tracking error: a) when it is expected that the constituent stocks of the underlying index will be adjusted; B) When the company conducts any act such as splitting, share splitting, additional issuance, dividend distribution, merger and acquisition, etc. Appear in the constituent stocks of the underlying index; C) When the index constituent stocks have liquidity problems or may be suspended from listing or delisted; D) Other factors affecting index replication. The adjustment of the fund's index portfolio is carried out in a regular and irregular manner. 1) Regularly adjust the indexed portfolio constructed by the Fund, and make corresponding tracking adjustments to its constituent stocks according to the tracked S&P BRIC 40 Index. Within one month before the announcement of the information on the regular adjustment of the constituent stocks of the target index, based on the analysis and prediction of the adjustment scheme and the analysis of the influence of the adjustment of the constituent stocks on the stock price, the Fund decided to adopt the strategy of adjusting in advance or adjusting afterwards, and on the premise of keeping a small tracking error, increase the stocks that may enter the target index and eliminate the stocks that may be adjusted out of the target index. And within one month after the announcement of the regular adjustment information of the target index constituent stocks, the investment portfolio is constructed according to the adjusted index constituent stocks and their weights. 2) Irregular adjustment The Fund will adjust the index portfolio under the following circumstances: a) In the case of split listing, share splitting, additional issuance, dividends, mergers and acquisitions, etc., the weight of constituent stocks in the index will be affected, and the Fund will adjust the index portfolio in time according to the index adjustment announcement of the index company; B) Adjust the stock portfolio according to the fund purchase and redemption, and effectively track the underlying index; C) If individual constituent stocks cannot be purchased by the fund manager according to the weight of the underlying index due to suspension of trading, insufficient liquidity or restrictions of laws and regulations, the fund manager will comprehensively consider the minimization of tracking error and the interests of investors, and decide to partially hold cash or purchase relevant alternative combinations; D) When the constituent stocks are delisted, the corresponding constituent stocks are excluded from the index calculation, and the Fund will make corresponding adjustments; E) other matters that need to be adjusted. 3) Monitoring and management of tracking error The Fund will adopt the methods of pre-prediction and post-tracking analysis to control the tracking effect of the fund on the benchmark index, mainly adopting the performance evaluation standards of index funds commonly used in the industry, namely, the daily tracking deviation and annualized tracking error, to measure the difference between the daily income of the fund and the daily income of the benchmark index and the fluctuation of the difference over a period of time. The control goal is to pursue the minimization of the above two evaluation indexes. ① Pre-forecast: the fund manager estimates the risk factors and tracking errors of the fund through the investment risk model software used by the company every day: ■ where■ is the expected tracking error of the fund, Wp is the weight difference between individual stocks and the benchmark in the fund portfolio, and Fs and ∑FxF are the covariance matrix of individual stocks' exposure to risk factors and risk factors measured by the risk model software. The fund manager and risk control department predict the tracking error of the fund in advance to ensure that the fund will not run above the fund risk target, and monitor the main risk sources. ② Post-event tracking analysis: (1) The fund manager analyzes the tracking deviation of the fund every day. ■ where di is the daily tracking deviation, pi is the daily price return rate of the fund, and bi is the daily price return rate of the index. (2) At the end of each month, the fund performance and risk assessment team makes a quantitative assessment of the fund operation. ■ where σi is the daily tracking error of the fund in the latest year, di is the daily tracking error, and n is the trading day of the latest year. The annualized tracking error ∑ of the Fund will be calculated according to the actual trading day. According to the fund performance and risk assessment report, the fund manager will analyze the investment operation, portfolio status and tracking error of the current month, focusing on the reasons for the deviation and tracking error of the fund, cash control, the operation of the constituent stocks of the underlying index before and after adjustment, and the possible changes of the constituent stocks in the future. Under normal market conditions, the absolute value of the daily average tracking deviation of the Fund shall not exceed 0.35%, and the annual tracking error shall not exceed 6.0%. If the tracking deviation and tracking error exceed the above range due to the adjustment of index compilation rules or other factors, the fund manager should take reasonable measures to avoid further expansion of the tracking deviation and tracking error. 2. Bond investment strategy As a stock index fund, the bond investment of this fund is only an auxiliary investment means. The fund's bond investment aims to reduce the tracking error of the fund and manage the liquidity of the fund. At the same time, taking into account the needs of margin management of financial derivatives, we adopted an active investment strategy to build an overseas bond portfolio, and the choice of bonds was not limited to the BRIC markets. 3. Investment Strategy of Financial Derivatives The purpose of the Fund's use of financial derivatives is to achieve continuous trading on the China trading day as much as possible, reduce the tracking error of the index, and reduce the impact cost brought by centralized trading when liquidity is poor, rather than speculating on financial derivatives. When financial derivatives are not used, the use of derivatives can be minimized. The use of any financial derivatives will strictly follow the target of index tracking. The initial margin of financial instruments does not exceed 3% of the fund assets, and the fund operation does not use leverage, that is, the leverage ratio of the portfolio does not exceed 100% of the fund assets. At least 80% of the assets of the fund are tracked by the full copy method. However, considering the various situations of actual investment operation, we will participate in the investment of financial derivatives appropriately. The investment strategies of financial derivatives mainly include: (1) using the cross-market trading characteristics of financial derivatives to reduce the drag of investment restrictions, trading holidays and time difference on tracking index. (2) Use the leverage of financial derivatives to reduce the tracking error that may be caused by the trading liquidity of cash positions or some constituent stocks; (3) Using financial derivatives to hedge the tracking error caused by exchange rate fluctuation in some foreign exchange markets; (4) Make proper use of the holding income of financial derivatives portfolio to pay a certain fixed fund expenditure. The fund's investment in financial derivatives will strictly abide by laws and regulations and relevant regulations of regulatory agencies.

Dividend policy fund income distribution refers to the proportional distribution of the distributable income of the fund according to the fund share according to the regulations. 1. Fund income is distributed through cash or dividend reinvestment. For the fund shares registered in the registration system, the holders can choose their own income distribution methods. If the fund share holder does not make a choice in advance, the default dividend method is cash dividend; If dividend reinvestment is selected, the cash dividend will be automatically converted into fund shares for reinvestment according to the net value of fund shares after ex-dividend on ex-dividend date; The fund shares registered in the securities registration and settlement system only support cash dividends, and investors cannot choose other dividends. Specific rights distribution procedures and other related matters shall comply with the relevant regulations of Shenzhen Stock Exchange and China Securities Depository and Clearing Co., Ltd.; 2. Each fund share enjoys equal distribution rights; 3. Income distribution can only be carried out when the profit available for distribution of the fund is positive; 4. The net value of fund shares minus the income distribution amount of each fund share on the base date of fund income distribution cannot be lower than the face value, and the base date of fund income distribution is the deadline for calculating the distributable profit of the fund; 5. Under the premise of meeting the dividend conditions of relevant funds, the fund income distribution is at most 12 times a year; The income distribution ratio of each fund share is not less than 20% of the distributable profit of each fund share on the base date of income distribution; 6. The time from the fund dividend payment date to the income distribution benchmark date shall not exceed 15 working days; 7. Investors' cash dividends and fund shares formed by dividend reinvestment are rounded to the second decimal place, and the losses caused by this error shall be borne by the fund property, and the proceeds shall be owned by the fund property; 8. Where laws, regulations or regulatory agencies provide otherwise, such provisions shall prevail.

Performance benchmark Standard & Poor's BRIC 40 Total Income Index (S&; PBRIC40Index(NetTR)) yield

Risk-return characteristics The Fund is a passively managed index fund. Its main investment direction is the constituent stocks and alternative constituent stocks of the Standard & Poor's BRIC 40 Index. Securities investment funds with high risk and high return expectation have higher expected risk and return level than bond funds and hybrid funds. Moreover, the fund mainly invests in emerging markets represented by BRIC countries, and its risk-return level is higher than that of funds investing in mature overseas markets.