During the first half of 2025, bond funds shone brightly in a complex and volatile bond market, with several funds surpassing their performance benchmarks in terms of net value growth rates. By adeptly adjusting their investment portfolios, certain bond funds under Nanhua Fund managed to navigate market fluctuations and achieve noteworthy returns. Some funds employed strategies to bolster allocations in short-duration bonds, aiming to mitigate interest rate risks while enhancing returns through the selection of high-quality credit bonds. As we gaze into the second half of the year, institutions generally maintain a cautiously optimistic outlook on the bond market, anticipating the emergence of structural opportunities. Consequently, investors are advised to maintain the flexibility of their investment portfolios, keeping a close eye on short-end liquidity and long-end allocation value, in order to capitalize on potential market opportunities.