A Letter to Holders of the Huitianfu Stable Income Fund – Hong Kong Dollar Units: How Dividend Income is Calculated

Dear Esteemed Investors, Greetings!

We sincerely thank you for your continued support and trust in the Huitianfu Stable Return Fund (the "Fund"). Through this letter, we aim to report on the Fund’s performance since its inception on January 20 this year, explain the calculation methodology of the Fund’s returns, and share our analysis of current market conditions as well as future strategies. This will help you gain a comprehensive understanding of the Fund's operations and investment value.

I. Product Performance Review

Since its inception on January 20 this year, the fund has been operating steadily amidst a complex and volatile market environment,with recent monthly return rates as follows:：

Although the net asset value slightly retraced in some months due to market fluctuations, overall performance remained robust. In particular, Class A HKD units achieved2.02%returns in May, demonstrating the resilience and earning potential of the fund's strategy.

The returns for HKD units in September will be slightly lower than those for USD units, primarily due to the exchange rate impact of HKD against USD. The underlying assets of the fund are denominated in USD, so the net asset value of HKD units fluctuates with the HKD/USD exchange rate, but withinwell-defined boundaries.Under the Linked Exchange Rate system, the exchange rate of the Hong Kong dollar against the US dollar is maintained within a range of 7.75 to 7.85. Therefore, returns from holding funds in Hong Kong dollars will fluctuate with changes in the exchange rate of the Hong Kong dollar against the US dollar. For detailed analysis, please refer to the Hui Tianfu Hong Kong WeChat public account post titled "A Letter to Holders of the Huitianfu Stable Income Fund – Hong Kong Dollar Shares: Achieving Stable Returns through Long-term Holding》。

II. Dividend Distribution Information

The fund distributes cash dividends to unit holders on a monthly basis, maintaining an annualized dividend yield consistently above 5%,Recent Annualized Dividend Yield* is as follows:

The fund’s actual historical monthly dividend payout rates** are as follows:

It should be particularly noted that, except for a small portion of dividends distributed from the fund's capital in April due to significant fluctuations in the U.S. bond market, all other monthly dividends were fully derived from the net distributable income of the fund^.

^ 'Net distributable income' refers to the net investment income of the relevant unit class (i.e., dividend and interest income after deducting fees and costs), which may include realized net gains based on unaudited management accounts, if any. However, 'net distributable income' does not include unrealized net gains.

Why does the net asset value decrease after dividend distribution?

This is because the fund distributes the current month’s earnings to holders in cash, resulting in a corresponding adjustment to the net asset value post-distribution, which is a normal reflection of the fund's dividend mechanism and does not represent a loss incurred by the fund.The cash dividends you receive are a tangible return on the fund's earnings.

Third, how to calculate the actual returns of a dividend-paying fund?

We will illustrate the composition of your actual returns through a specific example.

Assuming you subscribed to the Huitianfu Stable Income Fund Class A HKD units on the open day of September 22, 2025, with an investment amount of HKD 1,000, and the net asset value per HKD unit was 10.17583 on that day, the number of Class A HKD units acquired would be:

Investment Amount / Net Asset Value per Unit: 1000 / 10.1758 = 98.2724 units.

On October 13, 2025, the fund will go ex-dividend. The dividend per unit for Class A HKD units is 0.0424, meaning that the total cash dividend distributed on the payment date of October 15, 2025, will be:

Units * Dividend per Unit: 98.2724 units * 0.0424 = 4.17 HKD.

After the dividend distribution, the fund’s net asset value (NAV) will be adjusted downward to reflect the ex-dividend status, resulting in a post-dividend NAV of 10.1500*** for Class A HKD units as of October 13, 2025.

Therefore, the total asset value of your Huitianfu Stable Income Fund Class A HKD units in your account on October 13, 2025 (the ex-dividend date), will be:

Units * Unit NAV + Receivable Cash Dividend: (98.2724 * 10.1500) + 4.17 = 1001.63 HKD.

The actual rate of return from September 22 to October 13 is: (1001.63 - 1000) / 1000 = 0.16%.

You held the fund for 21 days, resulting in an annualized return of: 0.16% / (21 days / 365 days) = 2.78%.

<以上範例只供參考，非投資建議>

IV. Current Market Environment and Advantages of Fund Strategy

1. Strategy Advantages

– Against the backdrop of the Federal Reserve's interest rate cuts, fiscal easing and potential tariff-driven inflationary pressures persist; medium- to short-term bonds exhibit relatively high certainty and strong allocation demand, while long-term bonds may face greater volatility risks due to a steepening yield curve.

– The fund adopts a medium- to short-term credit strategy, with high-quality assets demonstrating strong repayment certainty and coupon spreads that remain attractive, effectively aligning with the current market environment.

2. Future Outlook

– Core investment strategy remains unchanged, focusing on medium- to short-term investment-grade bonds, adhering to strict risk control while pursuing steady progress.

– Closely monitoring the trend of spread compression under expectations of interest rate cuts, strictly controlling overall portfolio volatility while slightly extending individual bond durations, leveraging riding strategies to capture capital gains and enhance portfolio returns.

– Drawing upon the company’s deep credit research resources and the expertise of its professional team, strengthening coverage across global regions and selecting high-quality assets to provide diversified support for portfolio stability and growth.

Although the short-term adjustment of net asset value after dividend distribution may cause misunderstanding, we hope the above explanation helps clarify the situation for you.The fund continues to demonstrate strong profitability, with its strategy well-aligned with the current market environment.

Under the Federal Reserve’s rate-cutting cycle, the bond market is poised to present new opportunities.We encourage you to continue holding this fund to capitalize on potential capital gains and ongoing coupon income during the rate-cutting cycle.

$CUAM Stable Income Fund MDis (HK0001095360.MF)$

$CUAM Stable Income Fund MDis (HK0001095352.MF)$

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