CICC CSI 500 Index Enhanced Annual Report Analysis: Net profit surges by 736%; net assets increase by 70.5%; institutional holdings account for more than 70%

CICC CSI 500 Index Enhanced: Net profit surges by 736%; net assets increase by 70.5%; institutional holdings account for more than 70%

Key Financial Indicators: Double Growth in Net Profit and Net Assets

In 2025, China International Capital Corporation China Securities 500 Index Enhanced Fund (referred to as “CICC China Securities 500 Enhanced”) achieved a net profit of 246.47 million yuan, a year-on-year increase of 736% from 66.89 million yuan in 2024; its ending net assets reached 3.94M yuan, up 70.5% from 649.27 million yuan at the end of 2024, with both core indicators experiencing leapfrog growth.

Main Financial Data Comparison

Data Source: Fund 2025 Annual Report

The surge in net profit is mainly attributed to a significant increase in stock investment returns. During the reporting period, the fund realized a stock trading profit of 195 million yuan through quantitative enhancement strategies, a rise of 925% from 19 million yuan in 2024, becoming the core driver of profit growth.

Net Value Performance: Significant Excess Returns Outperform Benchmark by Over 8 Percentage Points

In 2025, the net value growth rate of China International Capital Corporation China Securities 500 Enhanced Class A shares was 36.88%, and Class C was 36.33%, both surpassing the performance benchmark (the CSI 500 Index return × 95% + the current deposit rate × 5%) by 8.07 percentage points and 7.52 percentage points, respectively, indicating significant excess returns.

2025 Net Value Growth Rate vs. Benchmark Comparison

Data Source: Fund 2025 Annual Report

From a long-term perspective, since inception, Class A shares have achieved a cumulative net value growth of 128.77%, with an annualized return of approximately 8.5%, significantly outperforming the same period’s CSI 500 Index return of 16.35%.

Investment Strategy and Operations: Quantitative Enhancement Strategy Effective, Manufacturing Sector Holdings Near 60%

The fund adopts an “Index replication + Quantitative enhancement” strategy, selecting stocks based on fundamental and technical factors. In 2025, it focused on high-growth, high-prosperity sectors, with manufacturing becoming the largest holding, accounting for 59.97% of the fund’s net assets, followed by mining (3.76%) and power & heat supply industries (3.34%).

End-of-Period Stock Investment Industry Distribution (Index Investment Portion)

Data Source: Fund 2025 Annual Report

Among the top ten holdings, manufacturing giants such as Goertek (002414), Glodon (002410), and Source Source (002841) occupy leading positions, with combined holdings accounting for 10.1% of net assets. The active investment portion mainly focuses on growth stocks like Jingjin Electric (688280), Lanjian Intelligent (688557), which contribute to excess returns.

Expenses and Trading: Management Fees Up 10.7%, Related-Party Transaction Commissions Account for 12%

In 2025, the fund’s management fee was 1.18M yuan, up 10.7%, roughly matching the 70.5% growth in fund scale; the custodian fee was 1.183 million yuan, up 10.8%. Trading expenses payable amounted to 367.6k yuan, slightly lower than 385.8k yuan in 2024.

Notably, the fund executed stock trades worth 959 million yuan through the related-party Zhongjin Company trading unit, accounting for 12% of total stock trading volume, with commissions paid of 187,886 yuan, also 12% of total commissions, complying with regulatory requirements.

Distribution of Trading Commissions

Data Source: Fund 2025 Annual Report

Share Changes and Holder Structure: A-Share Growth of 38.8%, Institutional Holdings Dominant

In 2025, the total fund shares increased from 491 million to 486 million, mainly due to redemptions of Class C shares. Class A shares grew by 38.8% (from 269 million to 373 million), Class B was newly issued with 1.9923 million shares, while Class C decreased by 8.6% (from 122 million to 111 million).

Institutional investors hold a dominant position: institutional holdings in Class A account for 69.49%, and in Class C for 90.86%, reflecting strong recognition from professional institutions. The fund manager’s staff hold 682.1k shares, accounting for 0.14% of total shares, with senior management holding between 100,000 and 500k shares.

Fund Manager Outlook: Focus on Technological Breakthroughs and Domestic Demand, Watch High-Prosperity Sectors

The manager believes that in 2026, the first year of the “14th Five-Year Plan,” macroeconomic recovery is expected to continue, with accelerated transformation of new and old growth drivers. Investment will focus on technological breakthroughs (such as semiconductors, artificial intelligence) and expanding domestic demand (consumption upgrades, new energy), using dynamic adjustments of factor weights via quantitative models to seek excess returns while controlling tracking error.

Risk Warning and Investment Advice

Risk Warning:

1. The CSI 500 Index is volatile; the fund’s net value may fluctuate accordingly;
2. Quantitative models may fail, leading to potential underperformance;
3. Significant redemptions of Class C shares may pose liquidity risks.

Investment Advice:
This fund has stable long-term excess returns, suitable for investors with a long-term view on small- and medium-cap growth sectors. Class A shares are recommended for holding over 1 year, while Class C is suitable for short-term trading (holding period <6 months). Institutional investors can enjoy lower fees through Class A shares; individual investors should choose share classes based on their holding period.

(Data as of December 31, 2025; all data in this document are from the fund’s 2025 annual report)

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