Rationale for Allocation

From the groundbreaking debut of DeepSeek at the beginning of the year to the rising prominence of "Chinese prowess" in the humanoid robotics sector, the technology sector has sparked an investment boom since the start of 2025.

The BOC Strategic Emerging Industries Equity Fund primarily invests in stocks related to strategic emerging industries. Established in November 2015, the fund has been in operation for nine years. Fund manager Li Sijia began managing the fund in October 2023. As of the end of 2024, Class A of the fund achieved a one-year net value growth rate of 18.19%, outperforming its benchmark return of 11.17% by an excess return of 7.02%, demonstrating significant alpha generation. The Q4 2024 report shows that the fund maintained a relatively balanced allocation strategy, actively participating in opportunities within the AI-related industrial chain. Industrial trends remain the core focus of allocation, with particular attention paid to the development of the AI industrial chain both domestically and internationally, including computing power and end-device applications (data source: fund periodic reports).

Fund manager Li Sijia adopts a balanced and steady investment style, emphasizing the replicability of investment returns. She is committed to pursuing stable and sustainable growth-oriented returns while thoroughly evaluating risk-reward ratios.

Regarding the explosion of AI applications, she stated, "From the perspective of investment opportunities, our team has maintained a high level of attention to the development of the entire AI industrial chain. From the stunning debut of Copilot in 2023 to the gradual delivery of performance by overseas AI-related companies in 2024, and further to the surge in capital expenditures and active participation by industry giants from 2024 to 2025, the development trajectory of the AI industrial chain has been clear and vigorous. For this year's investment opportunities, the marginal changes in the domestic AI market may be even more pronounced, with a clear signal being the significant increase in capital expenditures by major tech firms."

Manager Strengths

BOC Fund has long been committed to providing professional investment and wealth management services to investors, continuously improving its product lineup and strengthening its investment research team. Currently, the company has established a research-based, centralized resource-sharing investment research platform and a leading asset allocation system to enhance interaction between investment and research. On the equity research front, the team covers quantitative strategies, overseas markets, macroeconomics, and various industry sectors, providing timely research support.

Performance Overview

BOC Strategic Emerging Industries Class A was established on November 26, 2015, and Li Sijia began managing the fund on October 20, 2023. The fund's returns versus its benchmark over the past five years are as follows:

• 2020: 66.16% / 20.66%

• 2021: 25.75% / 0.03%

• 2022: -19.96% / -17.10%

• 2023: -16.54% / -7.89%

• 2024: 18.19% / 11.17%

BOC Strategic Emerging Industries Class C was established on December 11, 2020. Its returns versus its benchmark over the past five years are as follows:

• From inception to end of 2020: 14.57% / 3.60%

• End of 2021: 25.31% / 0.03%

• End of 2022: -20.29% / -17.10%

• End of 2023: -16.87% / -7.89%

• End of 2024: 17.73% / 11.17%

The fund manager currently does not manage any other products of the same type.

Risk Disclosure: Investments involve risks. Please exercise caution when investing.