A "fixed income plus" fund strategy, which balances stability and liquidity management while allowing for moderate participation in equity market gains, has become a favored choice for household investments. Particularly against the backdrop of increasing volatility in the securities market, the principle of "seeking progress while maintaining stability" has become a crucial consideration for many investors when selecting investment products.

Huashang Fund is set to launch the Huashang Yongli Bond Fund (Class A: 028319, Class C: 028320) on July 23. This secondary bond fund employs a "fixed income plus" strategy and will be managed by Zhang Fei from the Multi-Asset Investment Department, aiming to provide investors with a moderate to low risk appetite a new asset allocation option that balances stability and growth potential.

Fund Overview and Strategy

The Huashang Yongli Bond Fund has a clear positioning: it uses bond assets as the foundational portfolio to generate stable returns and appropriately participates in equity assets to enhance overall returns. Specifically, bond assets will account for no less than 80% of the fund's assets, while equity assets, along with convertible bonds and exchangeable bonds, will constitute between 5% and 20% of the fund's assets (please refer to the fund's legal documents for the complete investment strategy).

Introducing Fund Manager Zhang Fei

The proposed fund manager for the Huashang Yongli Bond Fund is Zhang Fei. He holds a Bachelor of Engineering from Huazhong University of Science and Technology and a Master of Finance from Shanghai Jiao Tong University. With 8.8 years of experience in the securities industry (including 5.9 years in securities research and 2.0 years in securities investment), he has previously served as a credit bond researcher, convertible bond researcher, and fund manager. Zhang Fei joined Huashang Fund in 2025 and currently manages funds including the Huashang Shuangyi Balanced Hybrid Fund.

Zhang Fei consistently applies a rigorous engineering research perspective, combined with solid technical knowledge, to his investment process. He emphasizes independent thinking and in-depth research, delving into underlying technical details and continuously enhancing his understanding of various industries. His approach focuses on bottom-up selection of growth stocks in the hard technology sector, valuing companies with strong technological barriers and significant growth potential. He maintains a keen interest in economic development, product technology, and commercial society, focusing on capturing investment opportunities arising from industrial transformation and technological advancement. Currently, he is particularly attentive to opportunities in areas such as AI, humanoid robots, competitive manufacturing exports, dividends, and cyclical reversals.

His core investment philosophy is to "create a 'fixed income plus' strategy with sharpness, striving for a superior risk-return profile." For pure bond investments, the focus is on obtaining stable coupon income without taking on excessive credit risk. For convertible bonds, he selects the most suitable sub-strategy types based on market style and valuation levels. For equity investments, he employs a balanced allocation approach, adjusting sector exposure based on changes in industry momentum and valuation levels, aiming to capture structural opportunities in the equity market to generate as much alpha as possible. Furthermore, he places great importance on controlling portfolio drawdowns, primarily through methods like style hedging, switching between high and low valuations, and prudent market timing to optimize the risk-return ratio.

Huashang Fund's Investment Philosophy and Track Record

Huashang Fund adheres to the principle of "investment driven by in-depth research," and its active fixed income team has consistently delivered leading medium to long-term performance. According to data released by a fund rating agency in July 2026, as of June 30, 2026, Huashang Fund ranked first in absolute returns for its active fixed income funds over the past seven years among 116 peer companies and also secured the top spot for absolute returns over the past five years among 127 peer companies. In the Tianxiang Investment Consulting AAAAA-rated fund management company evaluation report for the first quarter of 2026, Huashang Fund achieved the highest 5A rating in the "Three-Year Comprehensive Fund Manager Rating." It also received the top 5A rating in both the "Three-Year Active Equity/Hybrid Fund Rating" and the "Three-Year Active Bond Fund Rating" sub-categories, demonstrating multi-dimensional recognition of its investment capabilities by authoritative institutions.

Market Outlook and Investment Approach

Regarding the market outlook, Zhang Fei holds a positive view. He believes that following the recent market adjustments, numerous investment opportunities in undervalued areas have emerged, not only within the AI industry chain but also across many other sectors. He sees potential for further upside in the equity market in 2026. In terms of operations, he will adopt a balanced allocation approach. On one hand, he will seek companies within the AI industry chain that have solid fundamentals, occupy core positions, and have seen significant recent relief in valuation risks. On the other hand, he will continue to identify outstanding manufacturing enterprises across various industries that possess strong global competitive advantages, exhibit steady earnings growth, and are trading at historically low valuations. Additionally, he is closely monitoring and proactively positioning in areas undergoing positive changes, such as physical AI and humanoid robots.

For the convertible bond market, where the average premium per 100 yuan is currently at a historically high level over the past decade, Zhang Fei acknowledges the coexistence of opportunities and challenges. He stated that a "balanced high-volatility" sub-strategy will be employed to actively capture structural opportunities while controlling for volatility.

Important Details and Risk Information

The subscription period for the Huashang Yongli Bond Fund is from July 23, 2026, to August 7, 2026. For more information, please refer to the fund prospectus and other legal documents. The fund's "fixed income plus" strategy refers to a focus on fixed income assets supplemented by equity assets, aiming to pursue long-term stable returns under strict risk control. Alpha represents the portion of fund returns exceeding its performance benchmark over a specific period. The information in this article reflects the fund manager's investment philosophy; the fund's specific investment strategy is detailed in its legal documents. The investment directions mentioned by the fund manager are based on current market conditions and may adjust as the market changes; specific investment strategies are detailed in the fund's legal documents. As of June 30, 2026, Zhang Fei has 8.8 years of securities industry experience (including 5.9 years in securities research and 2.0 years in securities investment). Zhang Fei's past fund management roles include: Huashang Shuangyi Balanced Hybrid Fund (from November 4, 2025, to present) and Huashang Convertible Bond Select Bond Fund (from November 26, 2025, to present).

The absolute return ranking data for fund companies was released by the fund evaluation agency Guotai Haitong Securities in July 2026, with data as of June 30, 2026. The evaluation is conducted in accordance with the "Interim Measures for the Administration of Securities Investment Fund Evaluation Business." Net asset values of public funds are announced after verification by custodians. The absolute return of a fund management company refers to the net asset value growth rate of its actively managed funds, weighted by the assets under management during the period. Actively managed equity funds include actively managed open-end stock funds, strong equity hybrid funds, partial equity hybrid funds, balanced hybrid funds, flexible hybrid funds, flexible strategy hybrid funds, and actively managed closed-end hybrid funds, excluding index funds, lifecycle hybrid funds, partial debt hybrid funds, Hong Kong stock flexible strategy hybrid funds, Hong Kong stock partial equity hybrid funds, Hong Kong stock strong equity hybrid funds, and QDII funds. Actively managed fixed income funds include pure bond funds, closed-end pure bond funds, quasi-bond funds, closed-end quasi-bond funds, partial bond funds, closed-end partial bond funds, convertible bond funds, and short-term bond funds, excluding money market funds, wealth management bond funds, amortized cost bond funds, and index bond funds. The AAAAA rating data was released by the fund evaluation agency Tianxiang Investment Consulting in April 2026, with three-year rating data as of March 31, 2026. The evaluation is conducted in accordance with the "Interim Measures for the Administration of Securities Investment Fund Evaluation Business." Tianxiang's Fund Manager Comprehensive Rating is based on an analysis and assessment of three major aspects: the fund manager's fundamental strength, investment management capability, and company stability (including compliance). Fund managers are ranked from high to low based on their overall comprehensive score and divided into five levels from AAAAA to A. Actively managed equity/hybrid funds include five secondary classifications: stock funds - actively managed stock funds, hybrid funds - partial equity hybrid funds, hybrid funds - flexible allocation hybrid funds, hybrid funds - balanced allocation hybrid funds, and hybrid funds - partial debt hybrid funds. Actively managed bond funds include three secondary classifications: bond funds - pure bond funds, bond funds - mixed bond funds, and bond funds - convertible bond funds.

No subscription/application fees are charged for purchasing/subscribing to Class A fund shares of this fund through the direct sales agency. Subscription/application fees are required for purchasing/subscribing to Class A fund shares through a distributor. This fund's Class C shares do not charge subscription/application fees. The fund's sales service fee is 0% per annum for Class A and 0.2% per annum for Class C. No sales service fee is charged for purchasing/subscribing to Class C fund shares through the direct sales agency. For Class C fund shares purchased/subscribed through a distributor and held for more than one year (365 days), the continued sales service fee charged will be returned to the investor upon fund share redemption or fund contract termination, along with the redemption proceeds (or liquidation proceeds).

Risk Disclosure: The fund manager is committed to managing and utilizing the fund's assets with honesty, diligence, prudence, and due care, but does not guarantee that the fund will be profitable or that a minimum return will be achieved. The fund's past performance and its net asset value level do not predict its future performance. The performance of other funds managed by the fund manager does not guarantee the performance of this fund. The fund manager's past performance does not guarantee the performance of this new fund. If this fund invests in Hong Kong Stock Connect eligible stocks, it will also be subject to currency exchange rate risks and risks associated with overseas markets. Investors should read the fund contract, prospectus, fund product summary, and other legal documents carefully before investing in this fund. This product is issued and managed by Huashang Fund Management Co., Ltd. Distributors do not assume responsibility for the investment and payment obligations of the product. The market involves risks, and fund investment requires caution. Investors are advised to choose products that match their risk tolerance and investment objectives.