In mid-March, escalating geopolitical tensions triggered sharp volatility in equity markets, resulting in net value drawdowns across several enhanced fixed income products at CITIC Prudential Fund. Following the team's established "weekly drawdown monitoring mechanism," relevant fund managers were required to explain the causes of these drawdowns during the weekly meeting. After thorough deliberation, the team reached a consensus: the emotional shock from geopolitical conflicts was dissipating, the medium-term market logic remained intact, and the critical task was distinguishing short-term fluctuations from structural risks. Over the following week, fund managers independently made rebalancing decisions based on their products' positioning and risk budgets, concentrating holdings toward assets with stronger fundamental support. What this experience truly validated was not whether any single rebalancing call was right or wrong, but rather the core purpose behind the weekly drawdown mechanism—it wasn't designed to force hasty decisions during market panic, but to help fund managers maintain sound judgment under pressure through institutionalized review. What genuinely needs controlling is never individual drawdowns, but rather the downside risks that could evolve into permanent capital loss. The deeper value of this mechanism lies in its ability to compel fund managers to continuously track market performance, understand competitive product strategy differences, and discern market direction changes. Each comparison and reflection ultimately crystallizes into a more complete understanding of the market. The goal of the system isn't to constrain people, but to help them develop more stable operating habits.

This scenario deserves telling because the market it faces is undergoing profound transformation. The sustained decline in deposit rates and bank wealth management product yields has pushed a large cohort of investors who were accustomed to "certainty" to a crossroads—unable to return to deposits, yet unable to bear equity market volatility. The enhanced fixed income category is positioned to absorb this capital flow: as of the end of Q2 2026, there were nearly 2,000 enhanced fixed income funds across the market, with total assets exceeding RMB 3.5 trillion. (Source: iFinD, data as of June 30, 2026, multi-share class consolidated, covering secondary bond funds, primary bond funds, and partial bond hybrid funds.) However, this capital has a memory. The collective drawdown of enhanced fixed income products in 2022 left a lasting impression on many holders regarding the word "enhanced"—they need some elasticity, yet simultaneously fear it. Thus, the category's real question has never been "how to make people aware" but rather "how to help people stay invested." The answer offered by "adding a little, just right" is not to add more, but to add precisely the right amount.

In fact, this scenario is merely a microcosm of the daily operations of CITIC Prudential Fund's enhanced fixed income team. Recently, this established fund company officially launched its upgraded sub-brand for the enhanced fixed income business—"XinXiang+"—unveiling the brand proposition of "adding a little, just right." In the team's view, this represents not only a brand rejuvenation but a return to the essence of enhanced fixed income investing: finding that "just right" balance point for clients with different risk preferences in a volatile market. Supporting this philosophy is a boutique strategy that reverse-engineers products from client risk budgets, a drawdown control framework combining hard constraints with soft monitoring, and a human-machine integrated quantitative investment research ecosystem.

How Much to Add? — Determine the Risk Budget First, Then Set Portfolio Positioning

In product development, the CITIC Prudential enhanced fixed income team has chosen a path diverging from the "comprehensive scale" approach—opting instead for a "boutique strategy." The team explains this stems from their understanding of the "XinXiang+" brand essence: "adding a little, just right" is not merely a slogan; it addresses genuine client needs—not selling one product to everyone, but finding a solution that fits each client category's risk budget. Translating "risk budget" into everyday language, consider this scenario: a sum of idle money that won't be needed for two years. A few years ago, bank wealth management products could still yield around three-plus percent annually; now products offering just over two percent are considered decent. The investor considers moving elsewhere, yet the memory of wealth management products breaking net asset value in 2022 lingers—that drawdown was actually less than two percent, but panic led investors to redeem within weeks, selling at the bottom. For such an investor, the real question that needs answering is never "how much can I earn" but "during the worst moments, how bad will it get, and how long will it last?" This precisely is the reason an enhanced fixed income product should be built "in reverse."

Based on such inquiries, the team's product design approach carries a distinctly "reverse engineering" quality: first deeply understanding different investor types' risk budgets, return expectations, and drawdown tolerance, then reverse-engineering the product's strategy framework within fund contract parameters—determining the equity allocation ratio, whether to use convertibles or quantitative methods for yield enhancement, and where to position the duration of the core bond portfolio. The starting point for all design is not "what products can we create" but "what risk-return profiles do investors need." This model demands substantial team investment in investor analysis, yet precisely this tailored service enables them to precisely capture subtle but critical differences in demand across client segments.

Behind this "boutique strategy" lies a systematic understanding of "risk budgets." In the team's view, a risk budget is not a cold number but rather the answer to three questions: the extent of loss an investor can tolerate, how long that state might persist, and the probability of its occurrence. At the portfolio management level, a product's actual drawdown mathematically equals "maximum position" multiplied by "tail risk"—tail risk cannot be precisely predicted, so the core of drawdown control lies in constraining fund managers' maximum position rather than frequently intervening in their specific operations. Based on this judgment, the team grants fund managers relatively flexible operating space, allowing them to form and maintain stable investment styles, while the weekly review mechanism ensures their behavior remains anchored within the risk budget framework. In other words, the "little bit" in "adding a little" refers to this position sizing; "just right" describes the match between position and risk budget. The brand slogan here ceases to be rhetoric—it becomes a variable that can be written into investment constraints.

Following the risk budget line, the company's existing enhanced fixed income product array roughly corresponds to a risk ladder from low to high volatility. The low-volatility tier typically carries effective equity positions of 0%-10%, annualized volatility of 0%-4%, and typical maximum drawdown of 2%-2.5%, suited for wealth management replacement capital that is extremely sensitive to drawdowns. The medium-volatility tier ranges from 10%-20% equity, 4%-8% volatility, and 4%-6% maximum drawdown, catering to investors with some risk tolerance seeking enhanced returns. The high-volatility tier exceeds 20% equity, with 8%-12% volatility and 8%-10%+ maximum drawdown, targeting investors with higher risk tolerance seeking flexibility. The institutional challenge lies in achieving excellence within the framework. The team operates with refined precision under risk budget constraints, strictly controlling equity exposure while leveraging convertibles selection, IPO subscription strategies, and other tools within contractual limits to enhance returns and pursue superior risk-adjusted performance. The retail challenge involves capturing trends half a step ahead of demand. As bank wealth management yields continue declining, large numbers of individual investors are flocking to internet platforms seeking "wealth management alternatives," yet most market enhanced fixed income products cluster around large-cap dividend or "core asset" strategies, showing significant homogeneity. By keenly observing this shift through e-commerce data, the team reverse-engineered a micro-cap quantitative strategy product targeting retail clients' demand for low-correlation, differentiated tools—extending the "enhancement" component from crowded traditional sectors to small and micro-cap segments. These products exhibit lower correlation with mainstream equity assets, presenting distinct risk-return characteristics in volatile environments and offering retail clients more diverse choices.

Both the costs and benefits of this "boutique" route are visible in position sizing. Looking across all market enhanced fixed income funds, the median equity position at the end of Q2 2026 stood at 14.90% (Source: iFinD, data as of June 30, 2026, covering secondary bond funds, primary bond funds, partial bond hybrid funds, partial bond flexible allocation funds); meanwhile, the 13 enhanced fixed income products at CITIC Prudential Fund had a median equity position of 10.41% during the same period. (Source: Fund periodic reports; top ten holdings disclosed in periodic reports are point-in-time data, not representing current or future holdings. Investment ratios and targets are subject to adjustment within contract limits based on market conditions; refer to fund legal documents for details.) This is not necessarily a figure to boast about—it simultaneously means that in years of one-sided rallies, this product line likely won't rank at the top of returns. But it accurately explains the weight of "adding a little": the industry's conventional approach starts from "what we can do" to scale up and cover as many risk preferences as possible; this approach reverse-engineers from "what you can tolerate" and then stops at that position without adding more. "We hope to walk forward together with investors rather than just handing them a tool-like product," the team leader summarizes. "Products must evolve with investor needs—when their money changes nature and risk preferences shift, there should be a product on our line that can catch them." This tailored service and flexible adaptability capability is precisely the differentiation foothold CITIC Prudential's enhanced fixed income team seeks in fierce competition. Note: The above content is solely meant to illustrate fund managers' research thinking and current market views, not investment commitments. Fund investment strategies, sector allocations, specific targets, and ratios are subject to adjustment within contract limits based on market conditions.

Why Not Over-Add? — Embedding Drawdown Control into Performance Reviews and Weekly Meetings

For enhanced fixed income products, returns and drawdowns are not a simple trade-off—returns determine how far upward one can go, while drawdowns determine whether holders can stay invested. The CITIC Prudential enhanced fixed income team understands this deeply. Enhanced fixed income clients largely migrate from deposits and wealth management products, naturally harboring lower risk preferences; once product drawdowns exceed psychological expectations, it often triggers a negative feedback loop between redemptions and forced position cuts. Therefore, scientifically and effectively managing drawdowns has become critical to whether the "XinXiang+" brand can fulfill its "just right" promise. In drawdown management, the team employs a dual-track mechanism combining "hard constraints" and "soft monitoring."

At the hard constraint level, drawdown control is incorporated into fund manager KPI assessments with substantial weighting. The team has delineated clear drawdown baselines for low, medium, and high volatility enhanced fixed income products based on product risk ratings, directly linked to performance evaluations. This ensures every fund manager internalizes risk control as the starting point of decision-making when managing portfolios. If hard constraints define the "bottom line," the weekly drawdown monitoring mechanism provides "process management." During each weekly investment research meeting, alongside macro strategy discussions, there is a fixed agenda item: drawdown attribution and monitoring. The team tracks all enhanced fixed income products' drawdown percentile rankings among peers over the past year. If a product ranks in the bottom 60% for two consecutive weeks, the fund manager must explain the reasons and present a clear improvement plan. Within this dual-layer structure, the truly uncommon element is the second layer. The industry's more prevalent approach sets a maximum drawdown hard line for enhanced fixed income products, triggering position reduction upon breach. This line is simple and assessable, but its weakness is that it only activates at the moment of being touched—before that it does nothing, and after that it's too late.

"Process management is more effective than merely capping maximum drawdown," states the team leader. "If you only set a rigid maximum drawdown line, fund managers either abandon independent judgment to avoid breaching it, converging with the market, or are forced into aggressive actions near the red line. The weekly monitoring mechanism provides fund managers with pressure to correct errors while preserving a judgment window, making drawdown management a dynamic, sustainable process."

Why Can It Be Accurate? — Delegating Repetitive Tasks to Machines, Preserving Judgment for Humans

Deep technological integration runs as a consistent thread throughout the investment operations of "XinXiang+." In an era of information explosion, the frequency and magnitude of market changes have long exceeded the boundaries of individual experience. The CITIC Prudential enhanced fixed income team's view is clear: the goal is not replacing humans with machines, but enabling people to make more rational judgments aided by data. The team has constructed a multi-layered quantitative monitoring system covering different decision levels from macro to micro. At the asset allocation level, they track weekly changes in duration and credit bond ratios across all market bond funds, using multiple regression analysis to gauge current market risk appetite. When models indicate generally lengthening bond fund durations and rising credit bond ratios market-wide, this often corresponds to elevated market risk appetite—a signal incorporated as a reference dimension in portfolio decisions.

At the equity side, quantitative tools are more refined. The team has developed monthly-frequency asset class rotation models, weekly-frequency ETF rotation models, daily-frequency momentum models, and intraday high-frequency anomaly monitoring systems that capture real-time changes in market microstructure. These models don't directly replace fund manager decisions but provide objective data support, helping them maintain relatively rational judgment during extreme market sentiment. In AI applications, the team leverages the company's AI platform to embed large language models into daily investment research workflows. Each morning, the AI system automatically generates a briefing covering 30-year treasury futures momentum scores and overnight US stock theme mappings to A-shares, enabling fund managers to quickly grasp core global market variables before market open. AI is also deployed for personalized performance attribution analysis—using natural language processing to convert complex holdings data into intuitive text reports, helping fund managers more clearly identify style deviations and return sources. The team leader once expressed a viewpoint: AI can replace tedious text organization and initial information screening, but it cannot replace market judgment formed through long-term experience. Therefore, they position AI as a "co-pilot"—handling repetitive, data-intensive work so fund managers can devote energy to more valuable strategic thinking and original research.

Product Landscape: From Strategy to Products

Following this approach, the CITIC Prudential enhanced fixed income product line now covers mainstream equity-bond hybrid products in the market, forming a complete risk ladder. In the primary bond fund category, CITIC Prudential Shuangying Bond (LOF) holds 0% equity and 13.62% convertibles; CITIC Prudential Youzhi Pure Bond holds 0% equity and 48.80% convertibles. In the secondary bond fund category, CITIC Prudential Anxin Return holds 3.96% equity and 0% convertibles; CITIC Prudential Huili holds 0% equity, 8% fund investments, and 1.86% convertibles; CITIC Prudential Sandeyi Bond holds 9% equity and 2.78% convertibles; CITIC Prudential Huize 18-Month Fixed Open Bond holds 9.26% equity and 2.51% convertibles; CITIC Prudential Zengqiang Return Bond (LOF) holds 19.89% equity and 3.94% convertibles. In the partial bond fund category, CITIC Prudential Fengyu One-Year Holding Mixed holds 9.79% equity and 0% convertibles; CITIC Prudential Shengyu One-Year Holding Mixed holds 11.11% equity and 0% convertibles; CITIC Prudential Ruifeng 6-Month Mixed holds 13.42% equity and 0% convertibles. In the flexible allocation category, CITIC Prudential Zhiyu Mixed holds 8.94% equity and 0% convertibles; CITIC Prudential Xinwang Mixed (LOF) holds 10.54% equity and 0% convertibles; CITIC Prudential Zhixuan Mixed holds 10.41% equity and 0% convertibles. Position information is sourced from 2026 Q2 fund reports; the above is solely for illustrating research thinking and current market views, not investment commitments. Flexible allocation products do not necessarily hold fixed income assets. Top ten holdings disclosed in periodic reports are point-in-time data and do not represent current or future holdings. Fund investment strategies, sector allocations, specific targets, and ratios are subject to adjustment within contract limits based on market conditions; refer to fund legal documents for details.

Amid intensified market volatility in 2026, several products demonstrated solid risk-return balancing capabilities. CITIC Prudential Huize 18-Month Fixed Open Bond A achieved 6.18% net value growth over the past year, CITIC Prudential Zengqiang Return Bond (LOF) A grew 6.14%, CITIC Prudential Shengyu One-Year Holding A reached 5.79%, and CITIC Prudential Zhixuan Mixed A grew 5.09%. (Data as of 2026.8.17, verified by custodian. Same-period performance benchmarks: CITIC Prudential Shengyu One-Year Holding A: 3.8%; CITIC Prudential Zhixuan Mixed A: 8.06%; CITIC Prudential Huize 18-Month Fixed Open Bond A: 2.43%; CITIC Prudential Zengqiang Return Bond (LOF) A: 2.65%. Past performance does not indicate future results; fund NAV is volatile. NAV growth rates do not represent actual investor holding returns.)

Extending the time horizon, several representative products' long-term performance becomes clearer. CITIC Prudential Sandeyi Bond A, established in 2008, has traversed multiple bull-bear cycles with cumulative NAV growth of 130.61% since inception. CITIC Prudential Youzhi Pure Bond A achieved positive net value growth for 12 consecutive full years from 2014 to 2025. CITIC Prudential Zengqiang Return Bond (LOF) A has carved an independent outperformance curve within enhanced fixed income through its net profit gap stock selection framework, achieving cumulative NAV growth of 178.89% since its establishment on September 29, 2010. CITIC Prudential Zhixuan Mixed A has achieved positive net value growth in 8 of 9 complete natural years since establishment, with an annualized return of 5.93% since inception, demonstrating the long-term discipline of flexible allocation products. (Data as of 2026.8.17, verified by custodian. CITIC Prudential Sandeyi Bond A benchmark since inception: 92.33%; CITIC Prudential Zengqiang Return Bond (LOF) A benchmark since inception: 90.5%; CITIC Prudential Zhixuan Mixed A benchmark annualized since inception: 4.21%. Annualized return formula: annualized return = [(1 + total return) ^ (1 / holding years) - 1] × 100%. Annualized returns are merely one expression of historical performance over the period, do not predict future performance, and are not performance guarantees; annualized returns do not mean investors can achieve such returns at any point. Past performance does not indicate future results; fund NAV is volatile. NAV growth rates do not represent actual investor holding returns.)

As the asset management industry transitions from "scale-driven" to "quality-driven" growth, the CITIC Prudential Fund enhanced fixed income team, through the "XinXiang+" brand upgrade, has articulated the proper meaning of the "enhanced fixed income" business with an investment system integrating discipline, technology, and craftsmanship. This may be the deeper significance behind "adding a little, just right"—add too much, and investors can't hold on; add too little, and they won't stay. Adding more is easy, adding less is easy; what's genuinely difficult is knowing where to stop. In August, the "XinXiang+" product line welcomed a new addition—CITIC Prudential Huixin Bond Securities Investment Fund officially launched on August 31. As a secondary bond fund, Huixin maintains at least 80% bond positions as its core, anchoring to target duration and high-grade credit bonds, flexibly employing coupon, leverage, duration, carry, and bond selection strategies. For equity-linked assets, equity securities, convertible bonds (including separately traded convertibles), and exchangeable bonds collectively account for 5%-20% of fund assets, dynamically adjustable using trend, quality, and value style frameworks, with strict limits on the high-volatility component. This launch represents another practice of the "XinXiang+" "adding a little, just right" philosophy, offering new allocation options for investors with different risk preferences. CITIC Prudential Huixin Bond Securities Investment Fund is co-managed by fund managers Wu Hao and Xi Xingyi, with an R2 risk rating from the fund manager.

CITIC Prudential Zhixuan Mixed A yearly performance and benchmarks: from 2017 to 2025, the fund's annual NAV growth/benchmark returns were: 6.65%/10.65%, 2.68%/-9.62%, 10.99%/19.92%, 17.30%/15.20%, 6.66%/0.30%, -1.48%/-9.56%, 2.26%/-3.41%, 7.20%/11.86%, 5.46%/9.19%. CITIC Prudential Youzhi Pure Bond A 12-year performance and benchmarks, 2014-2025: 14.97%/9.41%, 17.56%/6.16%, 1.64%/2.12%, 4%/0.28%, 6.26%/8.12%, 7.11%/4.67%, 4.45%/2.97%, 4.43%/5.23%, 2.18%/3.32%, 3.77%/4.81%, 2.12%/7.89%, 4.34%/0.70%. CITIC Prudential Shengyu One-Year Holding was established on 2021-06-22, with a benchmark of China Bond Composite Wealth (Total Return) Index × 85% + CSI 300 Index × 10% + Hang Seng Index × 5%. 2022-2025 historical performance/benchmark, A class: -2.98%/-0.13%, -3.66%/2.21%, -0.54%/9.12%, 6.26%/3.71%. C class: -3.38%/-0.13%, -4.03%/2.21%, -0.95%/9.12%, 5.84%/3.71%. Past and current managers: Han Haiping (2021-06-22 to 2024-07-08), Sun Huicheng (2024-07-08 to present), Wu Qiujun (2024-07-08 to present). Fund manager risk rating: R3. CITIC Prudential Sandeyi, established 2008-09-27, benchmark: China Bond Composite Index × 80% + One-Year Bank Deposit Rate (after tax) × 20%. A class historical performance/benchmark, 2021-2025: 2.39%/4.48%, -2.83%/2.96%, -0.09%/4.15%, 3.97%/6.59%, 6.10%/0.86%. B class 2021-2025: 1.92%/4.48%, -3.22%/2.96%, -0.44%/4.15%, 3.93%/6.59%, 6.08%/0.86%. D class: performance not yet available as established less than six months ago. Past and current managers: Mao Weiwen (2008-09-27 to 2010-03-30), Wang Guoqiang (2008-09-27 to 2013-10-15), Li Pu (2012-06-18 to 2014-02-18), Song Haijuan (2014-02-11 to 2023-08-28), Han Haiping (2019-08-27 to 2023-08-28), Yang Lichun (2023-08-28 to present), Wu Hao (2023-08-28 to present). Fund manager risk rating: R2. CITIC Prudential Zhixuan Flexible Allocation Mixed Securities Investment Fund was established on 2016/11/8, with a benchmark of 50% × CSI 300 Index + 50% × China Bond Composite Index; depositary receipts added to investment scope from 2020/11/21. 2021-2025 historical performance/benchmark: A class: 6.66%/0.30%, -1.48%/-9.56%, 2.26%/-3.41%, 7.20%/11.86%, 5.46%/9.19%. C class: 6.55%/0.30%, -1.57%/-9.56%, 2.15%/-3.41%, 7.09%/11.86%, 5.35%/9.19%. E class added 2024/8/16, 2025 performance/benchmark: 5.03%/9.19%. Past and current managers: Yang Lichun (2020-01-14 to 2025-02-05), Ti Yuntao (2016-11-08 to 2025-04-10), Liu Hongliang (2024-10-31 to 2026-01-19), Jiang Peng (2025-02-24 to present), Gu Feichen (2025-12-29 to present). Fund manager risk rating: R3. CITIC Prudential Huize 18-Month (165530) was established on 2018-10-12, benchmark: China Bond Composite Index × 80% + One-Year Bank Deposit Rate (after tax) × 20%. Five-year NAV growth/benchmark growth, 2021-2025, A class: 4.41%/2.68%, 3.91%/4.48%, 1.81%/2.96%, 3.06%/4.15%, 3.87%/6.95%, 4.15%/0.86%. C class 2025: 3.76%/0.86%; D class: 4.14%/0.86%. Past and current managers: Yang Lichun (2018-10-12 to 2018-10-29), Miao Xiamei (2018-10-12 to 2020-01-15), He Wenzhong (2019-12-30 to 2022-08-05), Song Haijuan (2022-07-13 to 2024-01-16), Wu Qiujun (2023-12-11 to present). Fund manager risk rating: R2. CITIC Prudential Zengqiang Return LOF (165509) was established on September 29, 2010, benchmark: China Bond Composite Index. A class five-year NAV growth/benchmark: 2021-2025: 16.53%/5.23%, -12.22%/3.32%, -1.16%/4.81%, 9.34%/7.89%, 7.49%/0.70%. C class established 2024-09-26, NAV growth/benchmark since inception: 3.77%/0.11%; 2025: 7.09%/0.70%. Past and current managers: 2010-09-29 to 2016-07-24: Wang Xuwei; 2016-07-25 to 2016-08-04: Wang Xuwei, Song Haijuan; 2016-08-05 to 2020-10-14: Song Haijuan; 2020-10-15 to 2021-04-25: Song Haijuan, Chen Lan; 2021-04-26 to 2023-11-06: Song Haijuan; 2023-10-19 to present: Wu Qiujun. Fund manager risk rating: R2. CITIC Prudential Youzhi Pure Bond, established 2013/2/7, benchmark: China Bond Composite Index. Five-year (2021-2025) historical performance/benchmark, A class: 4.43%/5.23%, 2.18%/3.32%, 3.77%/4.81%, 2.12%/7.89%, 4.34%/0.70%. B class: 3.98%/5.23%, 1.90%/3.32%, 3.27%/4.81%, 1.67%/7.89%, 3.93%/0.70%. C class added 2022/12/5, 2023-2025: 3.59%/4.81%, 2.03%/7.89%, 4.27%/0.70%. I class added 2023/12/21, 2024-2025: 2.05%/7.89%, 4.34%/0.70%. D class added 2025/4/1, performance/benchmark: 3.93%/1.36% (2025/4/1-2025/31). Past and current managers: Li Pu (2013-02-07 to 2014-02-18), Wang Guoqiang (2014-02-11 to 2019-11-25), Wu Yinxi (2019-11-21 to 2023-09-05), Yang Mubin (2023-08-31 to 2024-09-23), Liu Hongliang (2024-07-16 to 2026-01-29), Zheng Yisa (2024-01-29 to present). Fund manager risk rating: R2.

The following fee rates are sourced from the most recently published prospectus and other legal documents; please refer to official announcements from fund managers or distributors for details. CITIC Prudential Huixin: management fee 0.60%/year, custody fee 0.10%/year. A class subscription fees: below RMB 1 million 0.30%; RMB 1-5 million 0.2%; above RMB 5 million RMB 1,000 per transaction. C class sales service fee 0.2%/year. Institutional investor A/C class redemption fees: below 7 days 1.5%; 7-30 days 1%; above 30 days 0. Individual investor A/C class redemption fees: below 7 days 1.5%; above 7 days 0. Repeated subscriptions/requests are charged separately according to corresponding fee tiers. Specific transaction rates and rules are subject to the latest legal documents and announcements. CITIC Prudential Zengqiang Return C: subscription fee 0%; redemption fee below 7 days 1.5%, 7-30 days 0.1%, above 30 days 0%; management fee 0.7%; custody fee 0.2%; sales service fee 0.4%. CITIC Prudential Zengqiang Return A: subscription fee below RMB 1 million 0.8%, RMB 1-2 million 0.5%, RMB 2-5 million 0.3%, above RMB 5 million RMB 1,000/transaction; redemption fee on-exchange: below 7 days 1.5%, above 7 days 0.1%; off-exchange: 0-7 days 1.5%, 7-365 days 0.1%, 1-2 years 0.05%, above 2 years 0%; management fee 0.7%; custody fee 0.2%. CITIC Prudential Huize 18-Month D: subscription fee below RMB 1 million 0.8%, RMB 1-2 million 0.5%, RMB 2-5 million 0.3%, above RMB 5 million RMB 1,000/transaction; redemption fee below 7 days 1.5%, above 7 days 0%; management fee 0.3%; custody fee 0.1%. CITIC Prudential Huize 18-Month C: subscription fee 0%; redemption fee below 7 days 1.5%, above 7 days 0%; management fee 0.3%; custody fee 0.1%; sales service fee 0.3%. CITIC Prudential Huize 18-Month A: subscription fee above RMB 5 million RMB 1,000/transaction; after the 18th month from contract effectiveness, the fund converts to an open-ended LOF and subscription fees apply: RMB 2-5 million 0.3%, RMB 1-2 million 0.5%, below RMB 1 million 0.8%; redemption fee on-exchange: below 7 days 1.5%, above 7 days 0.3%; off-exchange: 0-7 days 1.5%, 7-30 days 0.5%, 30-365 days 0.3%, 1-2 years 0.15%, above 2 years 0%; management fee 0.3%; custody fee 0.1%. CITIC Prudential Youzhi Pure Bond I: subscription fee above RMB 5 million RMB 1,000/transaction, RMB 2-5 million 0.3%, RMB 1-2 million 0.5%, below RMB 1 million 0.8%; redemption fee below 7 days 1.5%, 7-30 days 0.5%, above 30 days 0%; management fee 0.3%; custody fee 0.1%. CITIC Prudential Youzhi Pure Bond D: subscription fee below RMB 1 million 0.8%, RMB 2-5 million 0.3%, above RMB 5 million RMB 1,000/transaction, RMB 1-2 million 0.5%; redemption fee below 7 days 1.5%, above 7 days 0%; management fee 0.3%; custody fee 0.1%. CITIC Prudential Youzhi Pure Bond C: subscription fee 0%; redemption fee below 7 days 1.5%, 7-30 days 0.5%, above 30 days 0%; management fee 0.3%; custody fee 0.1%; sales service fee 0.1%. CITIC Prudential Youzhi Pure Bond B: subscription fee 0%; redemption fee 0-7 days 1.5%, 7-30 days 0.5%, above 30 days 0%; management fee 0.3%; custody fee 0.1%; sales service fee 0.4%. CITIC Prudential Youzhi Pure Bond A: subscription fee below RMB 1 million 0.8%, RMB 1-2 million 0.5%, RMB 2-5 million 0.3%, above RMB 5 million RMB 1,000/transaction; redemption fee 0-7 days 1.5%, 7-30 days 0.5%, 30-365 days 0.3%, 1-2 years 0.15%, above 2 years 0%; management fee 0.3%; custody fee 0.1%. CITIC Prudential Zhixuan E: subscription fee 0%; redemption fee below 7 days 1.5%, 7-30 days 0.5%, 30-90 days 0.1%, above 90 days 0%; management fee 0.6%; custody fee 0.1%; sales service fee 0.4%. CITIC Prudential Zhixuan C: subscription fee 0%; redemption fee 0-7 days 1.5%, 7-30 days 0.5%, above 30 days 0%; management fee 0.6%; custody fee 0.1%; sales service fee 0.1%. CITIC Prudential Zhixuan A: subscription fee above RMB 5 million RMB 1,000/transaction, below RMB 500,000 0.8%, RMB 500,000-2 million 0.5%, RMB 2-5 million 0.3%; redemption fee below 7 days 1.5%, 7-30 days 0.75%, 30-180 days 0.5%, above 6 months 0%; management fee 0.6%; custody fee 0.1%. CITIC Prudential Shuangying D: subscription fee RMB 1-2 million 0.5%, RMB 2-5 million 0.3%, above RMB 5 million RMB 1,000/transaction, below RMB 1 million 0.8%; redemption fee below 7 days 1.5%, above 7 days 0%; management fee 0.5%; custody fee 0.15%. CITIC Prudential Shuangying C: subscription fee 0%; redemption fee below 7 days 1.5%, above 7 days 0%; management fee 0.5%; custody fee 0.15%; sales service fee 0.1%. CITIC Prudential Shuangying A: subscription fee RMB 2-5 million 0.3%, RMB 1-2 million 0.5%, above RMB 5 million RMB 1,000/transaction, below RMB 1 million 0.8%; redemption fee on-exchange: below 7 days 1.5%, above 7 days 0.1%; off-exchange: below 7 days 1.5%, 7-180 days 0.1%, above 180 days 0%; management fee 0.5%; custody fee 0.15%. CITIC Prudential Sandeyi Bond D: subscription fee below RMB 5 million 0.3%, above RMB 5 million RMB 1,000/transaction; redemption fee below 7 days 1.5%, above 7 days 0%; management fee 0.7%; custody fee 0.2%. CITIC Prudential Sandeyi Bond B: subscription fee 0%; redemption fee 0-7 days 1.5%, 7-30 days 0.5%, above 30 days 0%; management fee 0.7%; custody fee 0.2%; sales service fee 0.01%. CITIC Prudential Sandeyi Bond A: subscription fee RMB 1-2 million 0.5%, below RMB 1 million 0.8%, RMB 2-5 million 0.3%, above RMB 5 million RMB 1,000/transaction; redemption fee 0-7 days 1.5%, 7-30 days 0.5%, 30-365 days 0.3%, 1-2 years 0.15%, above 2 years 0%; management fee 0.7%; custody fee 0.2%. CITIC Prudential Xinwang Return C: subscription fee 0%; redemption fee off-exchange: below 7 days 1.5%, 7-30 days 0.5%, above 30 days 0%; management fee 0.6%; custody fee 0.2%; sales service fee 0.1%. CITIC Prudential Xinwang Return A: subscription fee above RMB 5 million RMB 1,000/transaction, RMB 500,000-2 million 1.2%, RMB 2-5 million 0.8%, below RMB 500,000 1.5%; redemption fee on-exchange: below 7 days 1.5%, above 7 days 0.125%; off-exchange: below 7 days 1.5%, 7-365 days 0.125%, 1-2 years 0.063%, above 2 years 0%; management fee 0.6%; custody fee 0.2%. CITIC Prudential Fengyu One-Year Holding C: subscription fee 0%; redemption fee above 1 year 0%; management fee 0.8%; custody fee 0.15%; sales service fee 0.4%. CITIC Prudential Fengyu One-Year Holding A: subscription fee below RMB 1 million 1%, RMB 1-3 million 0.6%, RMB 3-5 million 0.3%, above RMB 5 million RMB 1,000/transaction; redemption fee above 1 year 0%; management fee 0.8%; custody fee 0.15%. CITIC Prudential Huili C: subscription fee 0%; redemption fee below 7 days 1.5%, above 7 days 0%; management fee 0.6%; custody fee 0.15%; sales service fee 0.4%. CITIC Prudential Huili A: subscription fee below RMB 500,000 0.8%, RMB 500,000-2 million 0.5%, RMB 2-5 million 0.3%, above RMB 5 million RMB 1,000/transaction; redemption fee below 7 days 1.5%, above 7 days 0%; management fee 0.6%; custody fee 0.15%. CITIC Prudential Zhiyu C: subscription fee 0%; redemption fee 0-7 days 1.5%, 7-30 days 0.5%, above 30 days 0%; management fee 0.6%; custody fee 0.1%; sales service fee 0.1%. CITIC Prudential Zhiyu A: subscription fee below RMB 500,000 0.8%, above RMB 5 million RMB 1,000/transaction, RMB 500,000-2 million 0.5%, RMB 2-5 million 0.3%; redemption fee below 7 days 1.5%, 7-30 days 0.75%, 30-180 days 0.5%, above 6 months 0%; management fee 0.6%; custody fee 0.1%. CITIC Prudential Anxin Return E: subscription fee 0%; redemption fee below 7 days 1.5%, above 7 days 0%; management fee 0.7%; custody fee 0.15%; sales service fee 0.1%. CITIC Prudential Anxin Return D: subscription fee below RMB 500,000 0.8%, RMB 500,000-2 million 0.5%, RMB 2-5 million 0.3%, above RMB 5 million RMB 1,000/transaction; redemption fee below 7 days 1.5%, above 7 days 0%; management fee 0.7%; custody fee 0.15%. CITIC Prudential Anxin Return C: subscription fee 0%; redemption fee below 7 days 1.5%, 7-30 days 0.1%, above 30 days 0%; management fee 0.7%; custody fee 0.15%; sales service fee 0.4%. CITIC Prudential Anxin Return A: subscription fee below RMB 500,000 0.8%, RMB 500,000-2 million 0.5%, RMB 2-5 million 0.3%, above RMB 5 million RMB 1,000/transaction; redemption fee below 7 days 1.5%, 7-30 days 0.5%, 30-180 days 0.3%, above 180 days 0%; management fee 0.7%; custody fee 0.15%. CITIC Prudential Ruifeng 6-Month C: subscription fee 0%; redemption fee above 6 months 0%; management fee 0.8%; custody fee 0.15%; sales service fee 0.4%. CITIC Prudential Ruifeng 6-Month A: subscription fee above RMB 5 million RMB 1,000/transaction, RMB 1-3 million 0.6%, below RMB 1 million 1%, RMB 3-5 million 0.3%; redemption fee above 6 months 0%; management fee 0.8%; custody fee 0.15%. CITIC Prudential Shengyu One-Year Holding C: subscription fee 0%; redemption fee above 1 year 0%; management fee 0.8%; custody fee 0.2%; sales service fee 0.4%. CITIC Prudential Shengyu One-Year Holding A: subscription fee below RMB 1 million 1%, RMB 1-3 million 0.6%, RMB 3-5 million 0.3%, above RMB 5 million RMB 1,000/transaction; redemption fee above 1 year 0%; management fee 0.8%; custody fee 0.2%.

Risk disclosure: Funds differ from financial instruments such as bank deposits that provide fixed return expectations. When purchasing fund products, investors may share in investment gains according to held shares but may also bear losses from fund investment. Before investing, please carefully read the prospectus, product summary, fund contract, and other legal documents along with this risk disclosure, fully understand the fund's risk-return characteristics and product features, carefully consider all risk factors, evaluate your own risk tolerance based on investment objectives, time horizons, experience, and asset status, and make independent decisions choosing appropriate products. According to relevant laws and regulations, fund managers make the following risk disclosures: First, based on different investment targets, funds are classified as equity funds, hybrid funds, bond funds, money market funds, fund-of-funds, commodity funds, and other types. Different fund types offer different return expectations and carry different levels of risk. Generally, higher expected returns correspond to greater risk. Second, funds may face various risks during investment operations, including market risk, fund management risk, technical risk, and compliance risk. Massive redemption risk is unique to open-end funds—when net redemption applications exceed a certain percentage of total fund shares on a single open day (10% for open-end funds, 20% for periodic open funds, excluding special products specified by CSRC), investors may be unable to redeem all fund shares in time, or redemption proceeds may be delayed. Third, investors should fully understand the difference between regular fixed-amount investment plans and savings methods like installment deposits. Regular fixed-amount investment is a simple method guiding long-term investment and averaging investment costs, but it cannot avoid inherent fund investment risks, cannot guarantee returns, and is not an equivalent savings alternative. Fund managers remind investors of the "buyer beware" principle—after making investment decisions, investment risks arising from fund operations and NAV changes are borne by investors themselves. Past fund performance and NAV levels do not predict future performance; other funds' performance does not constitute a guarantee of this fund's performance. Fund managers commit to managing fund assets with honesty, credibility, and diligence, but do not guarantee profitability, minimum returns, or principal safety. Stocks/sectors/industries mentioned in this material are for reference only, not representing fund manager investment recommendations, fund holdings information, or trading directions. Stock gains do not represent future fund performance and do not constitute any investment advice or recommendation. Views expressed by fund managers do not constitute any guarantee of future market trends. The fund mentioned in this material is established under relevant laws and regulations and registered with the China Securities Regulatory Commission (CSRC). The fund contract, prospectus, and product summary have been publicly disclosed through CSRC's fund electronic disclosure website and the fund manager's website. CSRC registration of the fund does not indicate substantive judgment or guarantee of its investment value, market prospects, or returns, nor does it indicate that investing in the fund is risk-free. If the purchased product operates with periodic open-end mechanisms or the fund contract stipulates minimum holding periods, investors will face liquidity constraints during closed periods or minimum holding periods due to inability to redeem or sell fund shares. Funds carry risks; invest with caution.