Huashang Fund, a steadfast advocate of active management, launched its latest performance-linked fee product on August 24 — the Huashang Era Select Hybrid Fund (A: 028605, C: 028606). The fund features an innovative floating management fee structure, anchored by fund manager Ye Feng's investment philosophy of "holding firm to value while embracing change," and backed by Huashang Fund's over 20 years of active management expertise, aiming to deliver sustainable long-term returns for holders amid market uncertainty and genuinely enhance investor satisfaction.

Focused on enhancing investor returns, the floating management fee model for the Huashang Era Select Hybrid Fund is determined by both the investor's holding period and investment return level. This approach emphasizes alignment with investors' interests and prioritizes their overall experience. Through market-based adjustment mechanisms, it aims to guide the fund manager toward focusing on improving investment returns while encouraging investors to adopt long-term holding strategies and benefit from the power of compounding. Specifically, according to the fund's legal documents, the performance benchmark is "CSI 800 Index Return × 60% + CSI Hong Kong Stock Connect Composite Index (RMB) Return × 20% + ChinaBond Composite Full Value (Total Return) Index Return × 20%": when the holding period is less than 1 year (365 days), a management fee of 1.20% per annum applies. When the holding period is one year or more, the fee is determined in three tiers based on the difference between the investor's annualized return during the holding period (R) and the benchmark's annualized return over the same period (Rb). If the annualized excess return relative to the benchmark (after deducting excess management fees) exceeds 6% and the holding return (after deducting excess management fees) is positive, a 1.50% annual fee rate applies; if the annualized excess return is at or below -3%, a 0.60% annual fee rate is confirmed; otherwise, a 1.20% annual fee rate applies (see table below for details).

Note: R represents the annualized return of the share class, and Rb represents the annualized return of the fund's performance benchmark over the same period. In particular, when the holding period reaches one year or more, under the scenario where R > Rb + 6% and R > 0, if the annualized return after deducting excess management fees is less than or equal to Rb + 6%, or less than or equal to 0, the management fee for that fund share is still charged at the 1.20% annual rate, ensuring that the annualized return after deducting excess management fees still meets the criteria for charging excess management fees. Detailed information on the fund's investment objectives, investment ratios, investment strategies, and fee information can be found in the fund's legal documents.

Ye Feng, the designated fund manager, holds a master's degree from Peking University and serves as the Deputy General Manager of the Research and Development Department at Huashang Fund. He also manages funds including the Huashang Core Gravity Hybrid Fund and is the designated manager for the Huashang Era Select Hybrid Fund. With nearly 9 years of securities industry experience, including 4 years in securities investment, Ye Feng has developed an investment philosophy centered on "holding firm to value while embracing change" and excels at managing portfolios with a "dynamic balance approach." In his view, the starting point of investment is to hold firm to value — meaning a deep commitment to fundamental research and a thorough understanding of valuations. At the same time, he maintains heightened sensitivity and appropriate tolerance toward industry directions that are undergoing or about to undergo positive transformations, embracing change. When it comes to portfolio management, he adheres to a "dynamic balance approach." When growth stocks are relatively cheap, he strives to seize opportunities in high-quality growth stocks; when value stocks are relatively inexpensive, he focuses on reliable value opportunities. He firmly believes that all choices should ultimately return to fundamentals, to judgments about value, and to valuations themselves.

Looking ahead, Ye Feng believes that responding to market volatility with greater composure, closely tracking industry trends and changes in individual stock fundamentals, and assessing valuation levels may represent a better strategy. Overall, he remains optimistic about the industry directions currently allocated in the portfolio while closely evaluating valuation changes in the underlying investments. By making certain judgments on the macro landscape, conducting industry comparisons and in-depth research, and combining this with stock pricing, he aims to build a cost-effective portfolio while controlling drawdowns, striving to deliver reasonable returns to holders. Behind this product lies the active management expertise and investment research strength that Huashang Fund has accumulated over more than 20 years since its establishment. Thanks to its outstanding medium- and long-term performance, in December 2025, Huashang Fund was awarded the "Active Equity Investment Golden Bull Fund Company Award" by China Securities Journal, a prestigious honor that underscores industry recognition. According to data from fund evaluation institutions, as of June 30, 2026, Huashang Fund's actively managed equity funds ranked in the top four among 128 and 140 comparable companies for absolute returns over the past 7 years and 5 years, respectively, placing its medium- and long-term investment strength firmly at the forefront of the industry. In Tianxiang Investment Consulting's Q2 2026 ratings, Huashang Fund received a "Three-Year Fund Manager Comprehensive Rating" of 5A, while also achieving the highest 5A rating in both the three-year active equity and hybrid fund segment and the active bond segment.

With "dynamic balance" as the investment anchor and "floating fees" as the bridge of trust, combined with Huashang Fund's deep investment research heritage, the Huashang Era Select Hybrid Fund officially launched on August 24. Moving forward with the times and driven by value, investors are encouraged to pay close attention. Data notes: The fundraising period for the Huashang Era Select Hybrid Fund runs from August 24, 2026 to September 11, 2026. Excess returns represent the portion of fund returns exceeding the performance benchmark over a specified time period. As of June 30, 2026, Ye Feng has 8.9 years of securities industry experience, including 4.4 years in securities research and 4.0 years in securities investment. Ye Feng's fund management history includes: Huashang Core Gravity Hybrid Securities Investment Fund (from May 27, 2025 to present), Huashang Wanzhong Innovation Flexible Allocation Hybrid Securities Investment Fund (from May 27, 2025 to present), and Huashang Quality Select Hybrid Securities Investment Fund (from January 27, 2026 to present). The information in this article reflects only the fund manager's investment philosophy; the fund's investment strategy is detailed in the fund's legal documents. The fund manager's views are sourced from the Q2 2026 quarterly report of the funds managed by Ye Feng. The investment directions highlighted by the fund manager are judgments based on current market conditions and may adjust as market conditions evolve; specific investment strategies are detailed in the fund's legal documents. Fund company rankings and absolute return data were published by fund evaluation institution Guotai Haitong Securities in July 2026; as of June 30, 2026, Huashang Fund's actively managed equity funds ranked 4/128 and 4/140 for absolute returns over the past 7 years and 5 years, respectively; evaluations were conducted in accordance with the "Interim Measures for the Administration of Securities Investment Fund Evaluation Business." Public fund net asset values are published after being verified by custodians. The absolute return of a fund management company refers to the net asset value growth rate of actively managed funds weighted by managed asset scale during the period. Actively managed equity funds include active equity open-end funds, strong equity hybrid funds, partial equity hybrid funds, balanced hybrid funds, flexible hybrid funds, flexible strategy hybrid funds, and active hybrid closed-end funds, excluding index funds, lifecycle hybrid funds, partial bond hybrid funds, Hong Kong stock flexible strategy hybrid funds, Hong Kong stock partial equity hybrid funds, Hong Kong stock strong equity hybrid funds, and QDII funds. The AAAAA rating data was published by fund evaluation institution Tianxiang Investment Consulting in July 2026, with three-year rating data as of June 30, 2026, evaluated in accordance with the "Interim Measures for the Administration of Securities Investment Fund Evaluation Business." Tianxiang's comprehensive fund manager rating is based on analysis and assessment of three major aspects: basic strength, investment management capability, and company stability (including compliance), ranking from highest to lowest by overall composite score into five levels from AAAAA to A. Active equity and hybrid funds in terms of fund type include five second-level categories: equity funds - active equity investment funds, hybrid funds - partial equity hybrid funds, hybrid funds - flexible allocation hybrid funds, hybrid funds - balanced allocation hybrid funds, and hybrid funds - partial bond hybrid funds. Active bond funds include three second-level categories: bond funds - pure bond funds, bond funds - mixed bond funds, and bond funds - convertible bond funds. Subscriptions/purchases of Class A shares through direct sales channels do not incur subscription/purchase fees. Subscriptions/purchases of Class A shares through agency channels require subscription/purchase fees. Class A shares do not charge sales service fees, while Class C shares carry a sales service fee rate of 0.4% per annum. Subscriptions/purchases of Class C shares through direct sales channels do not incur sales service fees. For Class C shares subscribed/purchased through agency channels with a continuous holding period exceeding one year (365 days), the sales service fees continue to be charged and are returned to investors upon redemption, conversion, or fund contract termination along with the redemption proceeds, conversion proceeds, or liquidation proceeds.

Risk disclosure: The fund manager promises to manage and use fund assets with honesty, integrity, diligence, and prudence, but does not guarantee that the fund will be profitable or provide minimum returns. Past performance and net asset value levels do not indicate future performance. Performance of other funds managed by the fund manager does not constitute a guarantee of this fund's performance, and the fund manager's past performance does not constitute a guarantee of the new fund's performance. The fund's management fee consists of fixed management fees, contingent management fees, and excess management fees, where contingent and excess management fees depend on the holding period and annualized return level of each fund share. Therefore, investors cannot predetermine the overall management fee level of the fund when subscribing/purchasing. When calculating the fund's net asset value per share, the management fee is calculated at an annual rate of 1.20%, which may be higher or lower than the final management fee rate applicable to investors. The actual redemption or liquidation proceeds received by investors may differ from amounts calculated based on the disclosed net asset value per share; please refer to data confirmed by the registrar. The floating management fee model does not constitute a guarantee of fund returns by the fund manager. If the fund invests in Hong Kong Stock Connect stocks, it also bears exchange rate risks and overseas market risks. When purchasing this fund, investors should carefully read fund legal documents including the fund contract, prospectus, and fund product information summary. Market risk exists, and fund investment requires caution. Investors are advised to choose products that match their risk tolerance and investment objectives.