Fund Name: Guotai A300 Index Security Investment Fund

Product Profile:
Type of Fund: Contractual Open-end

Duration: None
Fund Custodian: Bank of China
Inception Date: December 18, 2007

Investment Objective:
The index investment method makes full replication of the A300 index as the objective, meanwhile taking serious investment restriction and quantitative risk control measure to seek to control the daily average tracking error between NAV growth rate and the benchmark of the fund no more than 0.35%.

Investment Concept:
The fund takes the passive index investment management mode, for attaining the simultaneous growth with the market and obtaining the long-term constant yield of the economy growth of China.

Investment Strategy:
Guotai A300 fund is an index fund, which makes full replication of A300 index as its objective. The fund builds the investment combination according to the standard proportion of the constituent stocks in the A300 Index. In order to accomplish the effective control of the tracking error, the fund manager will appropriately adjust the investment combination, when proxy constituent stocks and the constituent stocks have adjustment; the constituent stocks have allotment, additional share offers and dividend; and the purchasing and redeeming of the fund maybe will affect the result of tracking the A300 Index.