Balancing stability with liquidity management while capturing opportunities in the equity market, "fixed income plus" funds have increasingly drawn investor attention in recent years by offering an enhanced investment experience, with their appeal continuing to grow. Data shows that in the just-concluded year of 2025, the average net value growth rates for two categories of "fixed income plus" funds—ordinary secondary bond funds (Class A) and non-Class A—were 6.10% and 5.68%, respectively.

As a steadfast practitioner of active management, Huashang Fund has continued to produce a number of products with remarkable long-term performance through its deep commitment to "in-depth research and integrated investment research," consistently demonstrating the "hard power" of active management and long-term investment value. As of December 31, 2025, Huashang Fund's actively managed fixed-income funds ranked first in the industry in absolute returns over both the past five and seven years, while its actively managed equity funds also ranked within the top five in absolute returns over the same periods.

Taking Huashang Credit Enhanced Bond Fund, a standout "fixed income plus" product under Huashang Fund, as an example, data indicates that as of December 31, 2025, the net value growth rates for its Class A and Class C shares over the past year reached 22.61% and 22.11%, respectively. Additionally, according to data from fund evaluation agencies, Huashang Credit Enhanced Bond ranked first in its category for both the past five and seven years, delivering tangible, superior long-term holding experiences for investors.

Performance of Huashang Credit Enhanced Bond Fund Over 1, 3, 5, and 7 Years

The true vitality of a "fixed income plus" strategy lies in the sustainability of product performance, the management of drawdowns during cyclical fluctuations, and the capability for strategic asset allocation. As per the fund's legal documents, Huashang Credit Enhanced Bond Fund employs a "fixed income plus" strategy, primarily investing in high-credit-quality bonds while moderately participating in convertible bonds and equities, with the inclusion of multiple asset classes providing greater potential for achieving performance flexibility and enhancing returns.

Li Qian Deputy General Manager of Multi-Asset Investment Department, Huashang Fund Deputy Director of Multi-Asset Investment, Huashang Fund Fund Manager of Huashang Credit Enhanced Bond Li Qian, Deputy General Manager of the Multi-Asset Investment Department at Huashang Fund and Manager of Huashang Credit Enhanced Bond, emphasized that for fund management, the ability to allocate across major asset classes is crucial. Given the significant volatility in capital markets, absolute safety is unattainable; only by effectively implementing major asset allocation can one truly navigate through cycles, reduce the volatility of single assets, and deliver long-term stable returns to investors.

Judging from Li Qian's investment track record and portfolio holdings, his overall style is steady, with a strong focus on risk control. He thoroughly considers the safety, profitability, and liquidity of assets, striving to achieve stable asset appreciation under strict risk management. Summarizing Li Qian's investment philosophy, it primarily involves starting from macroeconomic fundamentals to analyze investment opportunities across different stages and markets, selecting investment directions top-down to ensure they are in prosperous channels, while also implementing specific investment targets from the bottom up.

As we enter the beginning of 2026, the market generally believes that in the era of diversified asset allocation, "fixed income plus," as an investment strategy that combines stability with sustainability, is poised to effectively unleash the "plus" effect of equity allocation over the long term, anchored by the steady foundation of fixed-income assets. For investors seeking relatively stable returns while desiring some degree of return elasticity in their overall portfolio, Huashang Credit Enhanced Bond Fund may represent an ideal long-term consideration.

Data Notes: ① "Fixed income plus" is an investment strategy for fund products that primarily invests in fixed-income assets while supplementing with equity assets, aiming to pursue long-term stable returns under strict risk control. The investment philosophy of the fund manager mentioned does not represent the fund's investment strategy; specific investment proportions and strategies are detailed in the fund's legal documents. ② The average net value growth rates for ordinary secondary bond funds (Class A and non-Class A) in 2025 are sourced from Galaxy Securities, with the statistical period from January 1, 2025, to December 31, 2025; the number of funds included in the average calculation for these categories was 512 and 544, respectively. ③ The net value growth rates of Huashang Credit Enhanced Bond over the past 1, 3, 5, and 7 years have been verified by the custodian; the benchmark return rates for the same periods are from Wind Information, as of December 31, 2025, with the benchmark returns for the past 1, 3, 5, and 7 years being 0.57%, 15.17%, 25.92%, and 36.19%, respectively. Peer performance ranking data were released by Galaxy Securities in January 2026, as of December 31, 2025; the fund types for Huashang Credit Enhanced Bond Class A and C are ordinary bond funds (secondary) (Class A) and ordinary bond funds (secondary) (non-Class A), respectively. ④ As of December 31, 2025, Li Qian has 9.7 years of experience in the securities industry (3.7 years in securities research and 6.0 years in securities investment). ⑤ Huashang Credit Enhanced Bond was established on September 8, 2015, with its performance benchmark being the CSI Aggregate Bond Index; please refer to the legal documents for details. The annual performance for Class A/C from 2020 to 2024 was 20.59%/20.16%, 33.49%/32.98%, -1.26%/-1.66%, -1.21%/-1.61%, and 9.29%/8.87%, respectively; the benchmark performance for the same periods was 3.05%, 5.65%, 3.49%, 5.23%, and 8.83%, respectively. Fund manager changes: Li Haibao from July 31, 2017, to July 17, 2020; Li Qian from July 16, 2020, to present. Net value growth rates and benchmark returns from 2019 to 2024 are sourced from the fund's periodic reports; the latest net asset value per share is available on the Huashang Fund website. ⑥ The subscription fee rates for Class A shares of Huashang Credit Enhanced Bond (for non-pension clients) vary by subscription amount: 0.8% for amounts below 1 million yuan; 0.5% for amounts between 1 million and 3 million yuan; 0.3% for amounts between 3 million and 5 million yuan; a flat fee of 1,000 yuan for amounts of 5 million yuan or above. Class C shares do not charge a subscription fee. Redemption fees for Class A shares are based on holding period: 1.5% for holdings less than 7 days; 0.1% for holdings between 7 days and 1 year; 0.05% for holdings between 1 and 2 years; no redemption fee for holdings of 2 years or more. For Class C shares, the redemption fee is 1.50% for holdings less than 7 days; no redemption fee for holdings of 7 days or more. No sales service fee for Class A; 0.4% per year for Class C. Pension clients subscribing through the company's direct sales center are subject to specific subscription fee rates; please refer to the fund's Prospectus and related announcements. ⑦ The absolute return evaluation data for the fund company's actively managed equity funds and actively managed fixed-income funds are from Guotai Haitong Securities, released in January 2026, as of December 31, 2025. Huashang Fund's actively managed equity funds achieved an absolute return of 90.58% over the past five years, ranking 5th among 139 comparable companies. Over the past seven years, the absolute return was 341.72%, ranking 4th among 121 comparable companies. The company's actively managed fixed-income funds achieved an absolute return of 45.22% over the past five years, ranking 1st among 126 comparable companies. Over the past seven years, the absolute return was 100.14%, also ranking 1st among 112 comparable companies. This evaluation data is conducted in accordance with the "Interim Measures for the Administration of Securities Investment Fund Evaluation Business." The net asset values of publicly offered funds are published after verification by the custodian. The absolute return of a fund management company refers to the net value growth rate of the actively managed funds it manages, weighted by the average assets under management during the period. The assets under management during the period are simply averaged based on available data. Actively managed equity funds include active open-end stock funds, strong-equity mixed funds, science and innovation strong-equity mixed funds, partial-equity mixed funds, balanced mixed funds, flexible mixed funds, flexible strategy mixed funds, and actively managed closed-end mixed funds, excluding index funds, life-cycle mixed funds, partial-debt mixed funds, Hong Kong stock flexible strategy mixed funds, Hong Kong stock partial-equity mixed funds, Hong Kong stock strong-equity mixed 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-debt bond funds, closed-end partial-debt 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. Pure bond funds include pure bond funds, closed-end pure bond funds, and short-term bond funds. Partial-debt funds include quasi-bond funds, closed-end quasi-bond funds, convertible bond funds, partial-debt bond funds, and closed-end partial-debt bond funds.

Risk Warning: The fund manager commits to managing and utilizing fund assets with honesty, integrity, diligence, and prudence but does not guarantee that the fund will necessarily be profitable or provide a minimum return. The past performance and net asset value of the fund do not indicate its future performance, and the performance of other funds managed by the fund manager does not guarantee the performance of this fund. When purchasing funds, investors should carefully read the fund contract, prospectus, fund product summary, and other legal documents. Specific investment strategies are detailed in the fund's legal documents. The above content does not constitute investment advice; the market carries risks, and fund investment requires caution. Investors are advised to choose products that match their risk tolerance and investment objectives.