E Fund CSI 300 Quantified Enhanced Fund As of 31 December 2019

Investment Objective Product Features The Fund is an enhanced equity index fund. On the basis of The Fund mainly adopts quantitative investment strategies. It uses efficiently tracking the benchmark index, the Fund implements quantitative approach which takes into consideration factors such quantitative strategies to achieve an investment return exceeding the as macro-economy, fundamentals of listed companies, market benchmark. sentiment and expectation of investors to create multi-factor model to forecast the excess return of individual stocks, and constructs its Benchmark: 95% x CSI 300 Index return + 5% x Current Deposit risk adjusted optimum investment portfolio through a portfolio Rate (after tax) optimizer which takes into account the forecasted value of stocks’ excess return and factors such as the overall risk level, transaction cost, impact cost, liquidity and investment limitation of the portfolio.

The quantitative investment model developed by the Fund Manager draws on the experience of research results from world- leading quantitative analysis, combined with the Fund Manager’s long-term research and application in practice. It utilizes the multi- factor quantitative model to forecast the excess return of stocks and to optimize the investment portfolio under the premise of effective risk control and the lowest transaction cost.

Cumulative Performance* Since YTD 3 Months 6 Months Fund Facts Launch1

Portfolio Manager: Zefan Guan Performance 153.21% 37.28% 6.33% 7.55%

Benchmark 63.59% 34.14% 7.03% 6.75% Custodian: China Construction Bank 1 Year 2 Years 3 Years Auditor: Ernst & Young Performance 37.28% 5.49% 36.97%

Inception Date: 5 July 2012 Benchmark 34.14% 1.78% 22.78%

Base Currency: RMB

Dealing and Trading Daily Frequency: Calendar Year Performance* Bloomberg Ticker: EFQUANF:CH 2019 YTD 2018 2017 2016

Performance 37.28% -23.16% 29.84% -1.83% ISIN / Trading Code: 110030 Benchmark 34.14% -24.12% 20.63% -10.62% RMB 1.23 billion AUM2: 2015 2014 2013 2012 (USD 176.99 million) Performance 12.67% 55.94% -3.71% 11.30% NAV: 2.5321 Benchmark 5.70% 48.69% -7.07% 2.07%

* NAV-to-NAV return, net return with dividend (if any) NOT reinvested. 1. The net return of fund since launch is calculated from 5 July 2012.

Note: Past performance information is not indicative of future performance. Investors may not get back the full amount invested.

Risk Reminder and Important Notice: • These materials are solely for communication and exchange within E Fund Management Co., Ltd. and for use by professional investors. These materials shall not be published or disseminated to any external party including but not limited to distribution in printed format or placing of copies at sales counters. • Any information contained in these materials which originates from this Company and this Fund, including the scale of assets under management, basic information on the fund, past performances, and prizes and awards, does not represent any determinative judgment on this Fund, and does not foretell the actual outcome of future operation of this Fund or the actual return it may yield. Nor does such information constitute any investment advice. The investment return of this Fund may vary as a result of changes in the market environment or other factors. • None of the contents of or statements in these materials shall be legally binding, or shall constitute part of any legal agreement, or shall be regarded as constituting an offer or invitation to treat made to any person, or shall constitute any promise. E Fund Management Co., Ltd. and its employees do not give any investment advice or any guarantee on investment return in respect of the contents of these materials, nor shall E Fund Management Co., Ltd. and its employees assume liability for any direct or indirect loss or damage arising from the use of these materials and the contents thereof by any person. • The information contained in these materials is for reference only and does not serve as promotion or marketing materials or legal documents. For specific details regarding this Fund, please refer to the fund contract and prospectus of this Fund. E Fund CSI 300 Quantified Enhanced Fund As of 31 December 2019

Asset Allocation (% of Total Assets) Top 10 Stock Holdings (% of Total Net Assets) 0.77% Ping An Insurance (Group) Company of China, Ltd. 6.37% Equity 7.03% Kweichow Moutai Co Ltd 4.96% China Merchants Securities Co Ltd 3.09% Jiangsu Hengrui Medicine Co.,Ltd. 2.83% Bank Deposit & Haitong Securities Co., Ltd. 2.26% Settlement Reserve CRRC Corporation Limited 1.88% China Minsheng Banking Corp., Ltd. 1.74% 92.20% Gree Electric Appliances,Inc. 1.70% Other Midea Group Co Ltd 1.67% Shaanxi Coal Industry Company 1.65% Market Review Equities Sector Breakdown (Active Investment) During the reporting period, the domestic macro-economic growth still showed an oscillation at lows, with the growth rate of industrial (% of Total Net Assets) Mining value added fluctuating around 5-6%. Meanwhile, manufacturing investment, infrastructure investment and real estate investment all Manufacturing* slowed down slightly from January to November, but the current 0.30% Utilities month-on-month data shows mild improvement and strong resilience. CPI rose by 4.5% YoY on pork price hikes in November, reaching a Construction 0.15% 1.38% new high since 2012. However, the latest data have suggested mitigated imbalance in pork supply, with inflation expected to have 0.23% Wholesale and Retail 1.27% peaked in the short run. The growth rate of aggregate financing to Transportation, Warehouse and the real economy remained stable, basically flattish during the Postal Services reporting period. Given the short-term inflation pressure still present, Communication, Software and IT monetary easing will be limited in the short term to avoid 1.51% 8.80% Services Finance indiscriminate strong stimulus.

Real Estate In the stock market, the SSE Composite Index, the CSI 300 Index,

0.19% 0.79% Leasing and Commercial Services and the CSI 500 Index increased by 4.99%, 7.39% and 6.61%, respectively and the broad-based indexes of all major markets rose Research and Technological during the reporting period. From industry structure perspective, Services building materials, electronics, household appliances and media 0.24% Water Conservancy, Environment and Public Facilities Management were the top gainers outperforming the index significantly, while 0.60% Culture, Sports, and Entertainment national defense, commercial trade, public utilities and leisure 0.12% 0.44% services were weaker performers. The market liquidity improved in Equities Sector Breakdown (Index Investment) general. Theme rotations were quick and investors’ risk appetite improved considerably. From the perspective of factors, style shifts (% of Total Net Assets) Agriculture, Forestry, were frequent, some factors were more volatile and the overall Livestock, Fishery 0.56% Mining accumulated yield leveled off during the reporting period. But the 0.08% 2.00% expectation factors performed more prominently, contributing 3.72% 3.36% Manufacturing* positively to the portfolio.

Construction Fund Strategy Utilities During this period, as an index enhanced fund, this Fund was operated by the fund manager in strict compliance with the Wholesale and Retail quantitative index enhanced investment model. On the basis of the composition of the target index, this Fund mainly adopted the Transportation, Warehouse 31.03% 28.08% quantitative investment model developed by the fund manager, and Postal Services which was mainly led by fundamental stock selection factors, using it Communication, Software, and IT Services to increase or decrease allocations within a limited scope. On the Finance one hand, this Fund strictly controlled tracking errors of portfolios in order to avoid significant deviations from the target index; on the Real Estate other hand, this Fund strove to outperform the index on the basis of index tracking. Education 1.86% 0.68% * According to the CSRC industry classification guideline, Manufacturing consists of 31 subcategories 1.85% Culture, Sports, and which has including food manufacturing, medical manufacturing, general equipment manufacturing, 3.39% 1.23% Entertainment furniture manufacturing, and etc. Manufacturing carries the most subcategories in all industry sectors.