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Yinhua Fund Management Co., Ltd. Announcement on the Scheme of Applying Fund Property Investment Warrants to Some Managed Securities Investment Funds
According to the Notice on Issues Related to Investment Warrants of Securities Investment Funds in the Share trading Reform and the provisions of relevant fund contracts, Tianhua Securities Investment Fund, Yinhua Advantage Enterprise Securities Investment Fund, Yinhua Principal Guaranteed Value Added Securities Investment Fund and Yinhua Dow Jones 88 Selected Securities Investment Fund managed by Yinhua Fund Management Co., Ltd, It is possible to use the fund assets to invest
Warrants.
The relevant scheme is announced as follows:
1、 Proportional limit of risk control
1. The total amount of warrants purchased by a fund on any trading day shall not exceed 0.5% of the net asset value of the fund on the previous trading day;
2. The market value of all warrants held by a fund shall not exceed 3% of the net asset value of the fund;
3. The same warrant held by all funds managed by the company shall not exceed 10% of the warrant;
If the fund investment does not meet the above investment proportion due to factors other than the fund manager, such as fluctuations in the securities market, changes in the size of the fund, and payment of consideration in the share trading reform, the adjustment will be completed within ten trading days.
2、 Investment strategy
Through the fundamental research on the underlying securities of warrants, and combined with the option pricing model to estimate the value of warrants, we should invest cautiously.
3、 Information disclosure method
The Company will disclose relevant information about fund investment warrants in the quarterly report, semi annual report and investment portfolio report of the annual report of the Fund. When the portfolio report discloses the asset portfolio of the fund, it also displays the amount of warrants at the end of the reporting period and their proportion in the total assets of the fund in a list.
In the semi annual report and annual report, disclose the details of all warrants sorted by the proportion of market value in the net asset value of the fund at the end of the reporting period, including the warrant code, warrant name, number, market value at the end of the reporting period, and the proportion of market value in the net asset value of the fund.
4、 Risk control measures
（1） Permission settings
In line with the concept of prudent investment and hierarchical decision-making, the Company has set the decision-making authority for warrant investment as follows:
1. If the market value of all warrants held by a fund exceeds 1% of the net asset value of the fund, it shall be reported to the Chief Investment Officer for approval.
2. If the market value of all warrants held by a fund exceeds 2% of the net asset value of the fund, it shall be reported to the Investment Decision making Committee of the Company for approval.
（2） Process control
The researcher analyzes the fundamentals of the underlying securities of the warrants and calculates the theoretical price of the warrants according to the terms of the warrants. The fund manager, with full reference to the opinions of the researchers and in combination with the judgment on the underlying securities' fundamentals and future trend, fully assesses the risk and return characteristics of the warrants, and prudently invests under the premise of strict risk control according to the authority granted.
（3） Prohibited acts
When using fund assets to invest in warrants, it is not allowed to obtain illegitimate interests through insider information, manipulate the price of warrants or underlying securities, use warrant investment for benefit transmission, or conduct any act that damages the interests of fund share holders.
5、 Risk disclosure
Warrants are a kind of financial derivatives, which have the characteristics of high leverage, high risk and high return, and are risky. Some of the securities investment funds managed by the Manager will invest in warrants, and fund holders are requested to pay attention to investment risks.
The Company can timely revise the warrant investment plan according to changes in laws, regulations and market conditions, and report to China CSRC And then make an announcement.
It is hereby announced.
Yinhua Fund Management Co., Ltd
August 20, 2005
Sina statement: The content of this article is purely the author's personal view, only for investors' reference, and does not constitute investment advice. Investors operate accordingly at their own risk.
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