Huashang Fund, which received the "Golden Bull Fund Company Award for Active Equity Investment" in December 2025, will begin offering its second floating management fee product starting February 26—the Huashang Core Preferred Hybrid Fund (Class A: 026430, Class C: 026431). The fund is set to be managed by Wang Yiwen, Assistant General Manager of the Equity Investment Department at Huashang Fund. It aims to leverage the company's active management strengths and a new fee structure that links management fees to investor returns, striving to help investors benefit from China's high-quality economic development while enhancing their investment experience.

According to the fund's legal documents, the performance benchmark for the Huashang Core Preferred Hybrid Fund is composed of 60% CSI A500 Index return, 20% ChinaBond Composite Total Price Index return, and 20% CSI Hong Kong Stock Connect Composite Index return. The fund’s floating management fee design ties the fee to both the investor's holding period and the fund’s performance during that period. Specifically, if an investor holds the fund for less than one year, the annual management fee is set at 1.20%. For holdings of one year or more, the fee is determined based on the fund’s annualized return relative to the benchmark’s annualized return. If the excess annualized return exceeds 6% and the net return is positive, the fee is 1.50%. If the excess return is -3% or lower, the fee drops to 0.60%. In all other cases, the fee remains at 1.20%. This structure aims to align the interests of the fund manager with those of investors and improve long-term returns.

Wang Yiwen, the proposed fund manager for Huashang Core Preferred Hybrid, currently serves as Assistant General Manager of the Equity Investment Department at Huashang Fund and has nearly 13 years of experience in the securities industry, including 7.3 years in research and 5.6 years in investment. He joined Huashang Fund in 2013 as a researcher, covering sectors such as machinery, home appliances, and small to mid-cap stocks, and later led industrial and consumer research teams. Over time, he has developed a value-growth strategy centered on mid-level industry research, selecting investment directions based on industry evolution and picking stocks with a long-term perspective.

Through years of investment experience and reflection, Wang Yiwen has formulated his own investment approach: “using core assets as a foundation and enhancing returns through industry cycles.” He believes economic growth is driven by successive industry cycles, each with distinct return characteristics. Core assets, as a “sub-optimal choice” over a full cycle, offer quality, controlled risk, high liquidity, and large capacity, providing solid downside support. Leading industries within cycles, as the “optimal choice,” offer greater upside potential. By combining both, the portfolio’s risk-return profile can be improved.

Wang Yiwen suggests that the current market may be in the mid-phase of an uptrend driven by a new industry cycle, with artificial intelligence as the dominant theme—spanning computing power and AI applications. Core assets, meanwhile, focus on areas such as non-ferrous metals, basic chemicals, non-bank finance, machinery, and power equipment.

Amid increasingly complex market conditions, the Huashang Core Preferred Hybrid Fund aims to provide investors with a pathway to benefit from China’s high-quality growth, supported by Huashang Fund’s research capabilities, active management expertise, and innovative floating fee mechanism.

The subscription period for the Huashang Core Preferred Hybrid Fund runs from February 26, 2026, to March 18, 2026. Class A shares purchased through direct channels do not incur subscription fees, while fees apply for purchases through agencies. Class C shares do not charge subscription fees. Redemption fees vary by holding period, with no fee applied after 180 days. A sales service fee of 0.4% per year applies to Class C shares.

Investors are reminded that fund performance is not guaranteed, and past results do not indicate future returns. Management fees may vary based on holding period and performance. Potential risks include currency and overseas market exposure for Hong Kong Stock Connect investments. Investors should review the fund’s legal documents carefully before investing.