Industrial Securities CSI 500 Index Enhanced Annual Report Analysis: Shareholders surged by 139.9%, net assets doubled to 587 million, management fees increased by 231% year-on-year

Key Financial Indicators: Net Profit Surpasses 113.3469 Million; Net Assets Up 129.3% Year over Year

In 2025, the Industrial Bank CSI 500 Index Enhanced Fund (Class A: 015507; Class C: 015508) delivered notable growth, with impressive performance in its core financial indicators. Total net profit for the period reached 113,346,926.23 yuan, including 26,575,110.08 yuan for Class A and 86,771,816.15 yuan for Class C. Total net assets at period-end were 586,587,370.39 yuan, up 129.3% from 255,751,373.27 yuan at the end of 2024, achieving a doubling of scale.

Net Value Performance: Growth Rate of A/C-Class Shares Exceeds 35%; Outperforming the Benchmark by 7 Percentage Points

In 2025, the fund’s net value performance significantly outperformed its performance benchmark. The net value growth rate for Class A shares was 36.39%, and for Class C shares 35.97%. In the same period, the benchmark return rate was 28.81%, resulting in excess returns of 7.58% and 7.16%, respectively. From a long-term perspective, the cumulative net value growth rate for Class A since inception was 34.78%, outperforming the benchmark by 14.74 percentage points.

Investment Strategy and Operations: Technology Growth Leads the Way; Quantitative Factor Contributions Are Significant

The report shows that in 2025, China’s A-share market exhibited structural divergence; the Wind All A Index rose 27.65%, and the technology growth segment led the market. The fund adopts a strategy of “index tracking + quantitative enhancement.” Based on the weight of constituent stocks in the CSI 500 Index, it dynamically adjusts through price-volume-type factors and fundamental factors. Throughout the year, the price-volume factors contributed strongly in volatile market conditions, while fundamental factors provided stable returns; together, they drove the portfolio to outperform the benchmark.

Fee Analysis: Management Fees Up 231% YoY; Trading Commission Concentration at 100%

Management Fee and Custody Fee Rise in Tandem

The fund’s management remuneration in 2025 was 3,755,738.57 yuan, up from 1,132,588.18 yuan in 2024 by 231.6%; custody fees were 375,573.90 yuan, up 231.6% year over year. Fee growth basically matched the expansion of asset scale (management fee is accrued at a 1% annual fee rate; custody fee at 0.1%).

Trading Expenses and Related-Party Transactions Are Highly Concentrated

For the year, the fund’s stock trading expenses were 2,025,157.50 yuan, and bond trading expenses were 344.97 yuan. Notably, all stock and bond trades were executed through the transaction dealing unit of the related party Guotai Junan Securities. The total stock trading amount for the year was 4,096,311,339.08 yuan, and commissions paid were 779,394.02 yuan, accounting for 100% of the total commissions, presenting a risk of reliance on a single trading channel.

Stock Investments: Manufacturing Accounts for Nearly Half; Top 10 Holdings Concentration at 14.7%

Industry Allocation: Manufacturing Dominates

At period-end, the market value of stock investments was 497,134,736.73 yuan, accounting for 84.75% of the fund’s net asset value. Within industry allocation, manufacturing accounted for 47.53%, finance 6.75%, mining 4.59%, and technology-related industries such as information transmission, software, and information technology services 1.69%.

Details of the Top 10 Heaviest-Routings

The combined market value of the top 10 holdings was 86,384,346 yuan, accounting for 17.38% of the market value of stock investments; concentration is relatively low. Western Mining (1.41%), Tongfu Microelectronics (1.39%), and Dahua Laser (1.29%) are the top three holdings, all of which are constituents of the CSI 500 Index.

Holder Composition: Institutions in Class A Account for 57.7%; Individuals in Class C Account for 88.4%

At period-end, the total number of fund holders was 5,642 accounts, with an average holding of 77,743.74 shares per account. For Class A shares, institutional investors held 57.67% and individual investors 42.33%; for Class C shares, individual investors accounted for 88.38%, while institutions accounted for only 11.62%, indicating that Class C is more favored by retail investors. Fund managers’ employees held 382,007.14 shares of Class C, representing 0.087% of the class; among them, fund managers hold Class C shares in the range of 100,000 to 500,000 shares, tying manager interests to those of investors.

Changes in Shares: Class A Scale Surges by 139.9%; Class C Net Subscriptions of 1.1 Billion Shares

In 2025, fund shares expanded significantly. Class A had 48.61 million shares at the beginning of the period and 116.6 million shares at period-end, with net subscriptions of 68.0 million shares and a growth rate of 139.9%. Class C had 211.8 million shares at the beginning of the period and 322 million shares at period-end, with net subscriptions of 110.2 million shares and a growth rate of 52.0%. Total subscriptions for the full year were 1.171 billion shares, and total redemptions were 993 million shares, resulting in net subscriptions of 178 million shares, reflecting investors’ recognition of the CSI 500 enhancement strategy.

Outlook from the Fund Manager: In 2026, Focus on Technology and the Cycle; CSI 500 Has Upside Elasticity

The fund manager believes that in 2026, China’s economy will continue to move in a generally stable and improving direction. Policy support will expand domestic demand and technological innovation. CPI is expected to rebound mildly, and PPI has potential to turn positive. The A-share market will continue to exhibit structural opportunities; technology and high-end manufacturing will contribute mainly to growth in profit. Inflows of foreign capital and residents’ asset reallocation will provide liquidity support. As the CSI 500 represents mid-cap blue chips, it has a relatively high share of technology and cyclical components; with a safe valuation margin, it offers upside elasticity. The fund will continue to optimize and enhance returns through quantitative models.

Risk Disclosure and Investment Recommendations

Risk Disclosure

2. Risk of Concentrated Trading Channels: 100% of stock trading is completed through Guotai Junan, and if the broker’s service capabilities decline or its ability to negotiate commission rates weakens, it may affect trading efficiency.
3. Risk of Scale Expansion: The fund’s scale doubled within one year. It is necessary to pay attention to the quantitative strategy’s capacity to control tracking error under large subscription and redemption volumes.
4. Market Volatility Risk: Technology-sector valuations are relatively high. If the market style shifts, it may lead to narrower excess returns.

Investment Recommendations

For investors who are optimistic about the CSI 500 Index in the long term and can tolerate medium-to-high volatility, they may consider this fund’s enhanced strategy. Short-term investors should note that the Class C sales service fee (0.3% annualized) may erode returns over a shorter holding period; if holding longer than 6 months, it is recommended to choose Class A.

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