In an ever-changing global market, adaptability and diversification aren’t just strategies—they are imperatives. ZO Asset Management International Ltd. (“ZOAM Intl.”, or the “Company”) positions itself as a forward-thinking asset management company built on a diversified, multi-asset investment philosophy tailored to evolving investor needs and market complexity. With a strong focus on flexibility and practical solutions, ZOAM Intl. strives to unlock long-term value and deliver resilient performance across market cycles.

Understanding the Multi-Asset Approach

The multi-asset approach is an investment strategy designed to diversify portfolios by investing across various financial instruments, asset classes, and geographic regions. This method seeks to balance risk and return by embracing flexibility and breadth in allocation. ZOAM Intl.’s approach includes but is not limited to investments such as:

•Fixed-income securities: Providing stability and reliable income streams.

•Exchange-traded funds (ETFs): Offering a cost-effective means of gaining exposure to diverse markets.

•Equity: Participating in economic momentum during a bull market to enjoy capital appreciation, dividend income and inflation-beating return

•Public or private funds: Unlocking growth opportunities across sectors and industries with good liquidity.

ZOAM Intl. thrives on its dynamic allocation strategy. From navigating global volatility to spotting niche opportunities, agility is at the core. By continuously monitoring economic trends and financial performance, the Company makes well-informed decisions aligning with its overarching investment philosophy—balancing short-term flexibility with long-term sustainability.

Research-Driven Process Serves as the Backbone

In today’s complex and volatile financial markets, fixed-income investments are favored by investors for their relatively stable return characteristics. ZOAM Intl. takes fixed-income investment as its core, and it is dedicated to earning investors’ long-term trust through steady performance. Its investment strategy is anchored by “absolute [MC1.1]return” and steered by “risk-return ratio,” emphasizing timely decision-making, global layout, multi-driver force, steady progress, and breaking through market limitations, aiming to provide investors with stable and reliable returns.

ZOAM Intl. places a steadfast emphasis on the research-driven investment process. Decisions are grounded in meticulous analysis, thorough market research, and informed foresight. ZOAM Intl. leverages research resources from its parent company, Zhong Ou Asset Management Co., Ltd (“ZOAM”), where the credit rating and investment research teams work closely together, with over 10 analysts averaging 7 years of experience. ZOAM Intl. has also established a centralized investment and research platform combining both top-down and bottom-up approaches to enhance fixed-income investment support, effectively managing default risks and providing independent credit evaluations across all industries and most fixed-income instruments.

From a top-down approach, ZOAM Intl. addresses market uncertainties by integrating:

•Macro-driven, including interest rate analysis and trend trading to guide investment decisions.

•Country and industry selection, targeting promising countries and sectors.

•FX strategies (hedging, enhancing), mitigating currency risks, and capitalizing on fluctuations.

•Diversification across asset classes to reduce concentration risk.

The sources of returns are a core part of the Company’s investment strategy, mainly coming from three aspects:

•Interest rates: captured through duration management, leverage, and swing trading to exploit market fluctuations.

•Credit: a bottom-up approach, focusing on trends in corporate fundamentals (6-12 months), relative value in global USD bonds, and cross-border research.

•Alpha: achieved through structural sinking, convertible bonds, preferred shares, AT1s, leveraging high-Beta opportunities.

The portfolio construction process is comprehensive and systematic, combining:

•Quantitative scoring: to evaluate investment targets through quantitative models.

•Asset allocation: to dynamically balance portfolio weights.

•Active execution, to realize targeted investment returns through the above strategies and methods.

Holistic Deployment: Covering Both Mainstream and Emerging Markets

In terms of investment scope, ZOAM Intl. has demonstrated a broad range in fixed-income investments, aiming to achieve stable returns and reduce risk through diversified asset allocation. The diagram [WJ2.1]showcases the diverse choices of ZOAM Intl. in fixed-income investment from developed to emerging markets, including bank loans, CDs, sovereign bonds, investment-grade bonds, high-yield bonds, convertible bonds, exchangeable bonds, asset-backed securities or mortgage-backed securities.

Regarding core yield, ZOAM Intl. achieves stable returns through diversified fixed-income strategies. For growing yield, ZOAM Intl. seeks higher return potential through developed/emerging market equities. Additionally, ZOAM Intl. focuses on alternative yield, achieving through REITS/infrastructure, private credit/equity markets, and other investment tools.

Thanks to that, our disciplined Multi-Asset approach enables us to identify emerging trends, capitalize on strategic opportunities, and deliver long-term, sustainable returns for our investors. By championing innovation, ethics, and excellence, ZOAM Intl.’s investment philosophy embodies the very essence of a modern, prescient enterprise.