Invesco Great Wall CSI 1000 Index Enhanced Annual Report Analysis: Net profit soars by 379%, AUM shrinks by 30.5%, Management fee decreases by 33%

Net Profit Soars 379% Year-on-Year, Performance Outperforms Benchmark

The annual report for 2025 of the Invesco Great Wall CSI 1000 Index Enhanced Fund (hereinafter referred to as “the Fund”) shows that during the reporting period, the Fund achieved a net profit of 26,302,816.79 yuan, a substantial increase of 379% compared to 5,487,743.12 yuan in 2024. Among this, Class A shares generated a profit of 14,692,092.25 yuan, and Class C shares generated 11,610,724.54 yuan, with weighted average net profit rates of 30.40% and 29.46%, significantly higher than 7.85% and 1.63% in 2024.

In terms of net value performance, the Class A share net value growth rate was 36.20% in 2025, and Class C was 35.67%, both significantly outperforming the benchmark return rate of 26.12% for the same period, with excess returns of 10.08% and 9.55%, respectively. Over the past three years, the cumulative net value growth rate for Class A shares was 46.48%, and for Class C it was 44.74%, continuing to outperform the benchmark rate of 20.34%.

Fund Share Net Redemption at 30.5%, Net Assets Slightly Shrink by 5.6%

At the end of the reporting period, the total number of fund shares was 62,121,018.10, a decrease of 27,286,159.90 shares compared to 89,407,178 shares at the end of 2024, with a net redemption rate of 30.5%. Among these, Class A shares decreased from 49,740,449.76 shares to 31,758,584.02 shares, with a redemption rate of 36.2%; Class C shares decreased from 39,666,728.24 shares to 30,362,434.08 shares, with a redemption rate of 23.5%.

In terms of net assets, the total at the end of 2025 was 88,852,916.36 yuan, a decrease of 5,257,972.21 yuan from 94,110,888.57 yuan at the end of 2024, a decline of 5.6%. Despite significant performance growth, the reduction in scale reflects a lack of confidence among investors in small and mid-cap index-enhanced products.

Management Fees Decrease by 33%, Trading Commission Concentration Exceeds 98%

In terms of expenses, the management fee payable by the fund for 2025 was 879,609.23 yuan, a decrease of 33% compared to 1,311,532.39 yuan in 2024, consistent with the trend of shrinking fund size. The custody fee was 131,941.39 yuan, a year-on-year decrease of 33.0%. The sales service fee was 157,964.72 yuan, a year-on-year decrease of 48.9%, mainly due to the reduction in the scale of Class C shares.

The trading commission was highly concentrated, with stock transactions amounting to 1,013,597,908.62 yuan executed through the affiliated broker CITIC Jiantou Securities, accounting for 98.58% of the total transaction amount, with a payable commission of 197,045.74 yuan, also accounting for 98.58%. China Galaxy Securities was the second-largest trading unit, accounting for 1.42% of transactions and commissions.

Stock Investment Income Soars 827%, Manufacturing Sector Accounts for Over 53%

In 2025, the fund’s stock investment income—profit from buying and selling stocks—reached 23,950,251.03 yuan, an 827% surge compared to 2,583,337.06 yuan in 2024, primarily benefiting from the small and mid-cap growth stock market. At the end of the period, the market value of stock investments was 81,212,717.82 yuan, accounting for 91.40% of the fund’s net asset value, in line with the contractual agreement of 90%-95%.

In terms of industry allocation, the manufacturing sector accounted for 53.56%, information transmission, software, and information technology services accounted for 9.60%, and wholesale and retail accounted for 2.48%. Among the top ten holdings, Fujing Technology (002222), Quectel Wireless Solutions (603236), and Penghui Energy (300438) ranked first, second, and third, with fair value accounting for 0.70%, 0.67%, and 0.64% of the fund’s net asset value, respectively.

Manager’s Outlook: Focus on New Productivity in 2026, CSI 1000’s Elasticity Expected

The manager believes that 2026, as the beginning year of the 14th Five-Year Plan, will have a high probability of achieving a “good start” for the economy, driven by domestic policy efforts and synchronized fiscal actions in Europe and the United States. Price level recovery and improved corporate profitability will support the equity market, and industries related to new productivity are expected to become structural opportunities. The CSI 1000 Index, representing small and mid-cap stocks, is expected to have greater elasticity in economic recovery. The fund will focus on companies with good cash flow and stable internal growth through a bottom-up stock selection approach to achieve excess returns.

Risk Warning: Shrinking Scale May Affect Liquidity, Caution Required for Small and Mid-Cap Volatility

Although the fund’s performance in 2025 was impressive, the continuous net redemption of shares has reduced the scale to around 62 million shares, which may affect the flexibility of portfolio adjustments. The CSI 1000 Index has high volatility; after a 49.57% increase in 2025, the valuation recovery space has narrowed, necessitating caution against market correction risks. Investors should consider their own risk tolerance and take a rational view of short-term performance fluctuations.

Holder Structure: Individual Investors Account for 98.16%, Institutional Holdings Below 2%

At the end of the period, the total number of fund share holders was 11,617, with an average holding of 5,347.42 shares per account. Individual investors held 60,976,511.53 shares, accounting for 98.16%; institutional investors held 1,144,506.57 shares, accounting for 1.84%. Fund management personnel held 56,194.37 shares, accounting for 0.09%, with fund managers holding shares in the range of 0-100,000 shares.

Summary: Performance and Scale Divergence Needs Resolution, Quantitative Enhancement Strategy Under Test

The Invesco Great Wall CSI 1000 Index Enhanced Fund achieved significant performance growth in 2025 driven by an outstanding quantitative enhancement strategy, but the continuous shrinkage in scale reflects a cautious attitude among investors towards small and mid-cap products. In 2026, whether the fund can attract capital inflows through sustained excess returns while addressing the high volatility of the CSI 1000 Index will be the core challenge faced by the management. Investors should pay close attention to the adaptability of its quantitative model in turbulent markets and the potential impact of scale changes on performance.

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