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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, the Nuoan Balanced Securities Investment Fund managed by Nuoan Fund Management Co., Ltd. may use the fund property investment warrants. Relevant matters are hereby announced as follows:
1、 Scale limit
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 shall not exceed 10% of the warrant;
China CSRC If otherwise specified, it is not subject to the proportion limit specified in Items 1, 2 and 3 above.
because negotiable securities Market fluctuations, fund size changes Non tradable shares If the fund investment does not meet the above investment proportion due to factors other than the fund manager such as payment of consideration during the 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） Investment authorization control
The investment decision-making committee shall determine the investment authority range of the fund manager. If the fund manager's investment in warrants exceeds the limited proportion, it can only be implemented after being approved by the investment director or the investment decision-making committee. The decision-making authority of warrant investment is 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） Investment decision control
Warrant investment requires the Investment Department and the Research Department to conduct in-depth research, formulate reasonable plans, constantly improve the warrant pricing model, and regularly assess the model risk. The fund manager shall make prudent investment within the scope of his authority and under the premise of strict risk control with full reference to the opinions of the Research Department.
（3） Transaction risk control
The trading orders of warrants are uniformly executed by the central trading room. The company sets the early warning and prohibition ratio of warrant investment through the fund management system, and imposes mandatory restrictions on the proportion of warrant investment.
（4） Risk and performance evaluation control
The Supervision and Audit Department regularly submits the performance and risk assessment report of warrant investment to the Investment Decision making Committee and the Risk Control Committee, analyzes and evaluates the performance and risk of warrant investment, and puts forward corresponding suggestions.
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. The above-mentioned securities investment funds managed by the Manager may invest in warrants, and fund holders are requested to pay attention to investment risks.
Nuoan Fund Management Co., Ltd
August 24, 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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