The A-share market is currently experiencing wide fluctuations, accompanied by a notable rise in uncertainty. However, periods of intensified market volatility and divergence often lay the groundwork for medium-to-long-term structural opportunities. Adopting a contrarian approach and carefully selecting high-quality assets with durable competitive edges during turbulent conditions can serve as an effective way to smooth the return curve and position for potential rebounds.

Take the recently launched Shanghai Pudong Development Bank AXA Fund Management Co., Ltd. (浦银安盛基金) Competitive Advantage Mixed Securities Investment Fund (Class A code: 028553, Class C code: 028554) as an example. This fund is designed to select listed companies with long-term competitive advantages while managing portfolio risk, with the goal of achieving steady medium-to-long-term appreciation of net asset value.

The proposed fund manager, Jiang Feng, emphasizes that the core of his contrarian investment philosophy is built on the "PB-ROE" framework, aiming to identify high-value targets within the coordinates of valuation and earnings trends. He adheres to strict valuation discipline, practicing the principle of "buy when no one is interested, sell when everyone is excited." This means he decisively sells when markets become overheated and valuations are stretched, and conversely, builds positions when stocks are overlooked and reasonably priced.

Jiang Feng notes that the characteristics of structural market conditions can limit the effectiveness of purely fundamental research. Therefore, he employs a systematic methodology for portfolio optimization and risk management, using "valuation-earnings" as the primary stock selection gate. By applying cyclical thinking within this framework, he seeks to enhance the Sharpe ratio and provide a smoother holding experience for investors.

Regarding investment direction, Jiang Feng believes that many small and mid-cap listed companies are concentrated in areas like technological innovation, high-end manufacturing, and specialized and sophisticated industries, making them micro-level carriers for the development of "new quality productive forces." During economic recovery or upward cycles, the earnings growth elasticity and potential of small and mid-cap stocks often surpass those of large-cap stocks. Consequently, his future investment strategy will focus on uncovering opportunities within small and mid-cap stocks, utilizing multiple dimensions such as industry prosperity, earnings trends, and valuations to identify companies with relatively low overall valuations.

At the same time, he pays close attention to dividend-paying value assets that possess long-term competitive advantages. Through this dual-track approach of "small and mid-cap growth plus dividend value," he aims to achieve a balanced offensive and defensive posture in a fluctuating market.

Risk Disclosure: Funds involve risks; investment requires caution. The risk level of the Shanghai Pudong Development Bank AXA Fund Management Competitive Advantage Mixed Securities Investment Fund is R4 - Medium-High Risk.

For Class A shares, the management fee rate is 1.20%, and the custodian fee rate is 0.20%. The subscription fee is 0.80% for amounts up to 5 million yuan, and 1,000 yuan per transaction for amounts of 5 million yuan or above. No subscription fee is charged when subscribing through the fund manager. Redemption fees are 1.5% for holdings of 0-7 days, 1% for holdings from 7 days (inclusive) to 1 month, 0.5% for holdings from 1 month (inclusive) to 6 months, and 0% for holdings of 6 months (inclusive) or more. The sales service fee is 0%.

For Class C shares, the management fee rate is 1.20%, and the custodian fee rate is 0.20%, with no subscription fee. Redemption fees are 1.5% for holdings of 0-7 days, 1% for holdings from 7 days (inclusive) to 1 month, 0.5% for holdings from 1 month (inclusive) to 6 months, and 0% for holdings of 6 months (inclusive) or more. The sales service fee is 0.40%.

This material is the property of the company. Without prior written permission, no institution or individual may delete or modify the content in any way that distorts its original meaning. Any stocks, industries, or sectors mentioned in this material are provided as examples only and do not constitute any investment advice. The fund manager is committed to managing fund assets diligently and in good faith, adhering to the principles of integrity and rigor. However, there is no guarantee of fund profitability or minimum returns. Investors should be aware that fund investments may result in losses of principal. Past performance of funds does not indicate future returns, and the performance of other funds managed by the fund manager does not guarantee the performance of this fund. China's fund market has a relatively short operating history and cannot reflect all stages of stock market development. Before investing in this fund, investors must carefully read the Fund Contract, Prospectus, and other legal documents. If you wish to purchase this fund, please pay attention to investor suitability management regulations, complete risk assessments in advance, and purchase fund products that match your risk tolerance. Market views represent only the views at the time and may change in the future. They are for reference only and do not constitute investment advice or guarantees, nor do they serve as any legal documents. This product is issued and managed by Shanghai Pudong Development Bank AXA Fund Management Co., Ltd., and distribution institutions do not bear responsibility for the product's investment and redemption obligations. The MACD golden cross signal has formed, and these stocks are performing well!