Earlier this year, deposit rates at major banks have been continuously lowered, and money market fund yields have narrowed further to around the "1% threshold." In this environment, risk-averse investors are consistently searching the market for low-volatility products with better value. Some bond products that have demonstrated stable historical performance and lower total cost ratios are now capturing investor attention.

The GF Central SOE 80 Bond Index Fund (referred to as "GF Central SOE 80"; A-Share: 008482; C-Share: 008483; D-Share: 020393), established on April 29, 2020, is the first mutual fund in the market to track the Shanghai Clearing House central enterprise credit bond index. Its benchmark, the Shanghai Clearing House 0-4 Year Central SOE 80 Bond Index, primarily consists of high-grade credit bonds issued by high-quality central state-owned enterprises (SOEs) with a remaining maturity of 4 years or less. Consequently, GF Central SOE 80 exhibits characteristics of high credit quality, medium-to-short duration, and medium-to-low risk.

Compared to short-to-medium-term investment tools like money market funds, short-term bond funds, and medium-to-short-term bond funds, GF Central SOE 80 has demonstrated superior performance over the past year. According to fund periodic reports and data from Galaxy Securities, as of June 30, 2026, GF Central SOE 80 achieved a one-year return of 1.82% (compared to a benchmark return of 2.14%). In contrast, the average net value growth rates for ordinary money market funds (A-Share), short-term pure bond funds (A-Share), and medium-to-short-term pure bond funds (A-Share) over the same period were 1.10%, 1.62%, and 1.81%, respectively.

As a passive index product, GF Central SOE 80 maintains low fee levels, with a management fee rate of 0.15% and a custodian fee rate of 0.05%. The total expense ratio of 0.20% is below the average total expense ratios of money market funds (0.30%) and short-term bond funds (0.46%). This provides a cost advantage for the fund's after-fee returns.

According to available information, the fund manager for GF Central SOE 80 is Hong Zhi, a member of the Bond Investment Department at GF Fund Management. With 13 years of securities industry experience and nearly 8 years of public fund investment experience, he has previously served as a bond trader, researcher, and investment manager at GF Fund. His current management responsibilities include two primary categories: credit bond index funds, such as GF Central SOE 80 Bond Index, Credit Bond ETF GF, and Sci-Tech Innovation Bond ETF GF; and actively managed pure bond funds, including GF Jinghui Pure Bond and GF Huili One-Year Term Open-End.

The GF Central SOE 80 index is positioned as a medium-duration investment-grade central enterprise index, tracking the Shanghai Clearing House 0-4 Year Central SOE 80 Bond Index. This index selects the top 80 central government-owned issuers with AAA ratings, ranked by net assets, and tracks the price movements of their short-term financing bills, medium-term notes, and enterprise bonds with a remaining maturity of 0-4 years. The liquidity of the underlying assets is the core advantage of the Central SOE 80. As per the fund's contract, investments in constituent bonds and candidate bonds must account for no less than 80% of non-cash assets.

To further enhance the liquidity of the underlying assets, the Central SOE 80 index aims for daily rebalancing. Hong Zhi stated, "Because the liquidity of new bonds typically surpasses that of older bonds, the daily rebalancing of the benchmark index helps significantly improve the liquidity of the underlying assets. These are details in product design, aimed at refining the product for better performance."

Against the dual backdrop of high-quality development and reasonably accommodative monetary conditions, Hong Zhi, fund manager of the GF Central SOE 80 Bond Index Fund, believes that credit bond index funds, with their low holding costs and trading convenience, are likely to gain recognition from allocation-type investors.

Note 1: The establishment date for GF Central SOE 80 Bond Index A is April 29, 2020. The performance benchmark is: Shanghai Clearing House 0-4 Year Central SOE 80 Bond Index Return × 95% + Bank Demand Deposit Rate (after tax) × 5%. Historical performance (performance benchmark): 2021: 3.95% (3.70%); 2022: 2.47% (2.39%); 2023: 3.53% (3.04%); 2024: 3.73% (3.49%); 2025: 1.16% (1.77%), data from fund periodic reports. Historical fund managers (dates of service): Li Wei (2020/04/29 to 2022/07/11), Hong Zhi (2022/07/11 to present).

Note 2: Sales fees for GF Central SOE 80 Bond Index are as follows: A-Share subscription fee rate: below 1 million yuan is 0.50%, from 1 million yuan (inclusive) to 2 million yuan is 0.30%, from 2 million yuan (inclusive) to 5 million yuan is 0.15%, and for 5 million yuan and above, a flat fee of 1,000 yuan per transaction. Redemption fee rate: held for less than 7 days is 1.50%, from 7 days (inclusive) to 30 days is 0.10%, and for 30 days or more, the redemption fee is 0. C-Share class does not charge a subscription fee; its redemption fee rate: held for less than 7 days is 1.50%, from 7 days (inclusive) to 30 days is 0.10%, and for 30 days or more, the redemption fee is 0. Additionally, C-Share class charges an annual distribution fee of 0.10%. D-Share subscription fee rate: below 1 million yuan is 0.60%, from 1 million yuan (inclusive) to 2 million yuan is 0.40%, from 2 million yuan (inclusive) to 6 million yuan is 0.20%, and for 6 million yuan and above, a flat fee of 1,500 yuan per transaction. Redemption fee rate: held for less than 7 days is 1.50%, and for 7 days or more, the redemption fee is 0. Please refer to the fund's prospectus, fund contract, and other legal documents for details.

Risk Disclaimer: This fund invests in the securities market. Before investing in this fund, investors must fully understand the product's characteristics and bear the various risks associated with fund investments. This fund is issued and managed by GF Fund Management Co., Ltd. Distributors do not assume responsibility for the investment and redemption of the product. Please carefully read the fund's legal documents, such as the fund contract and prospectus, before investing to fully understand the fund's details and risk characteristics. This fund is a bond fund, with risks and returns higher than money market funds but lower than hybrid funds and equity funds. The specific risk rating results shall be based on the ratings provided by the fund manager and sales institutions. Please choose products that match your risk tolerance and investment objectives. Fund investments carry risks. Investment must be made cautiously.