Anxin CSI 500 Index Enhanced Annual Report Interpretation: Class C Shares Shrink by 83.2%, Net Profit Soars by 294% — Growth Style Advantages and Scale Concerns Behind the Numbers

Core Financial Indicators: Net Profit Soars 294%, Net Asset Size Halved

In 2025, the Anxin CSI 500 Index Enhanced Fund achieved a net profit of 7,651,752.78 yuan, a substantial increase of 294.3% compared to 1,940,421.01 yuan in 2024, mainly due to a significant rise in stock investment returns. However, the fund’s net asset size experienced a “halving,” with total net assets at the end of the period amounting to 15,523,438.06 yuan, a decrease of 58.7% from 37,568,063.48 yuan at the end of 2024. The net assets of Class C shares shrank particularly severely, falling from 25,990,881.75 yuan to 5,680,404.79 yuan, a decline of 78.2%.

Net Value Performance: Both A/C Classes Outperform Benchmark, Long-term Excess Returns Significant

In 2025, the net value growth rate of Class A shares was 30.44%, while Class C was 29.89%, both outperforming the benchmark return of 28.81%, with excess returns of 1.63% and 1.08%, respectively. In the long term, since its establishment in November 2018, Class A has an accumulated net value growth rate of 130.84%, and Class C 124.34%, significantly outperforming the benchmark of 65.25%, with an annualized excess return of about 8.5%.

• | | Accumulated Net Value Growth Rate Since Establishment | 130.84% | 124.34% | 65.25% | | Annualized Excess Return (Since Establishment) | 8.5% | 7.8% |
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Investment Strategy: Quantitative Multi-Strategy Captures Growth in Small Cap Market, AI and Robotics Sectors Contribute Significantly

The manager noted in the report that the equity market in 2025 exhibited characteristics of “growth dominance and small-cap leadership,” with high-tech sectors like AI and robotics performing outstandingly. The fund employs a “passive index investment + quantitative enhancement” strategy, using a multi-factor model to select quality growth stocks while controlling tracking error (with an average daily tracking deviation absolute value of 0.32% and an annual tracking error of 4.15%, both below the contractually agreed 0.5% and 7.75%). Throughout the year, it focused on allocating to growth sectors such as manufacturing and information technology among CSI 500 constituent stocks, actively investing in leaders in niche fields like Huagong Technology (1.74%) and Haixing Electric (0.68%).

Cost Analysis: Management Fees and Custody Fees Decline with Size, Trading Efficiency Improves

In 2025, the fund’s management fees were 224,641.72 yuan, a year-on-year decrease of 22.8%; custody fees were 28,080.25 yuan, also a decrease of 22.8%, consistent with the trend of asset size shrinking (management fees accrued at a rate of 0.8% per annum, custody fees at 0.1%). On the trading side, stock trading spread income was 6,667,619.11 yuan, a year-on-year increase of 281.0%, mainly due to increased market activity and optimized quantitative strategies; payable trading fees were 6,694.48 yuan, a year-on-year decrease of 75.5%, indicating effective control of trading costs.

Stock Holdings: Manufacturing Sector Accounts for Over 60%, Concentration of Top Ten Holdings Moderate

At the end of the period, the market value of stock investments was 14,500,099.30 yuan, accounting for 93.4% of the fund’s net asset value. The top three industries in the index investment portion were manufacturing (58.7%), finance (9.5%), and information technology (5.3%); the top ten holdings included Shengyi Electronics (1.73%), Tianshan Aluminum (1.69%), and Jincheng Holdings (1.62%), accounting for a total of 15.8%, indicating moderate concentration. The active investment portion emphasized layouts in manufacturing (6.4%) and power (0.31%), with the top five holdings being Huagong Technology (1.74%) and Haixing Electric (0.68%), showing prominent yield-enhancing characteristics.

Share Changes: Class C Shares Face Massive Redemptions, Total Size Shrinks by 68.5%

In 2025, the total number of fund shares decreased from 21,589,666.23 shares to 6,796,118.32 shares, with net redemptions of 14,793,547.91 shares, a decline of 68.5%. Among them, Class C shares had net redemptions of 12,515,815.61 shares (falling from 15,047,916.65 shares to 2,532,101.04 shares), with a redemption rate of 83.2%; Class A shares had net redemptions of 2,277,732.3 shares (from 6,541,749.58 shares to 4,264,017.28 shares), with a redemption rate of 34.8%. The massive redemptions of Class C shares may be related to investors’ concerns about short-term profit realization or the small size of the fund.

Holder Structure: Individual Investors Dominate, Institutional Holdings at Zero

At the end of the period, the total number of fund holders was 1,451 households, with an average holding of 4,683.75 shares, all being individual investors, with no institutional investors holding shares. In terms of share distribution, there were 962 holders of Class A shares, with an average of 4,432.45 shares; 523 holders of Class C shares, with an average of 4,841.49 shares, showing significant retail characteristics. A single investor held over 20% of Class C shares (8,922,917.51 shares) from January to August 2025, later redeeming them in full, which may have exacerbated share volatility.

Related Transactions: 100% of Stock Transactions through Guotou Securities, Commission Ratio of 100% Raises Concerns

The report shows that the fund’s total stock trading amount was 328,263,588.76 yuan for the year, all completed through the related party Guotou Securities (the fund manager’s shareholder) trading unit, paying a commission of 64,340.14 yuan, accounting for 100% of the total commission for the period. Although the commission rate of 0.0196% (industry average 0.02%) is at a reasonable level, the highly concentrated trading channels necessitate caution regarding potential risks of profit transfer.

Risk Warning: Continuous 60 Days Net Value Below 50 Million, Warning of Liquidation Risk

Since July 6, 2023, the fund has had its net asset value below 50 million yuan for 60 consecutive working days, triggering the “liquidation warning” clause stipulated in the “Fund Contract.” As of the end of 2025, the fund’s net assets were 155 million yuan (Class A 98 million yuan + Class C 57 million yuan), though temporarily above the “50 million yuan red line,” the continued shrinkage in size may lead to deteriorating liquidity, affecting investment operational flexibility. Additionally, among the top ten holdings, Dongwu Securities, Changjiang Securities, and four other companies were penalized by regulators in 2025, warranting attention to holding credit risks.

Manager Outlook: Growth Style Continues in 2026, Optimistic about “Double Innovation” and Small Cap Stocks

The manager believes that 2026, as the starting year of the “14th Five-Year Plan,” will see policies focusing on supporting new productive forces and the internal circulation field, with a continuation of the growth style expected. The “Double Innovation” sector (Science and Technology Innovation Board, ChiNext Board) and small-cap stocks are likely to dominate. Against the backdrop of abundant international and domestic liquidity, equity assets still hold allocation value. The fund will continue optimizing quantitative models, aiming to uncover high-growth potential stocks while controlling tracking errors, striving to provide long-term excess returns for holders.

Investment Recommendations: This fund has stable long-term excess returns, suitable for investors looking to allocate to growth styles, but caution is needed regarding liquidity risks resulting from small size and the concentration of related transactions. Short-term focus on the manager’s layout dynamics in sectors benefiting from the “14th Five-Year Plan” policies.

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Editor: Xiaolang Quick Report