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In accordance with the Securities Investment Fund Law, the Notice on Issues Related to Securities Investment Fund Investment Warrants in the Share trading Reform issued by the CSRC and other relevant laws and regulations, BOCOM Schroder Fund Management Co., Ltd. has formulated the Warrant Investment Plan of BOCOM Schroder Fund Management Co., Ltd. on matters related to its fund investment warrants. According to the spirit of the notice, the Company has submitted the warrant investment plan to the China Securities Regulatory Commission.
It is hereby announced.
BOCOM Schroder Fund Management Co., Ltd
November 10, 2005
Appendix: Warrant Investment Plan of BOCOM Schroder Fund Management Co., Ltd
Warrant investment plan of BOCOM Schroder Fund Management Co., Ltd
In order to standardize the warrant investment operation of BOCOM Schroder Fund Management Co., Ltd. (hereinafter referred to as "the Company") and protect the legitimate rights and interests of fund share holders, according to the Securities Investment Fund Law, the Measures for the Management of Securities Investment Fund Operation, and the Notice on Issues Related to Securities Investment Fund Investment Warrants in the Share trading Reform The Company formulates this investment plan on the proportion limit, investment strategy, information disclosure, risk control measures and other contents in the process of investment in warrants of its funds.
According to the provisions of the fund contract of the Company's funds, BOCOM Schroder Selected Equity Securities Investment Fund is qualified for investment warrants.
The Company undertakes not 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 in the process of using fund assets for warrant investment.
If the relevant provisions of this investment plan are inconsistent with the latest provisions of the CSRC, the latest provisions of the CSRC shall prevail.
1、 Scale limit
BOCOM Schroder Fund Management Co., Ltd. will manage and control the warrant investment with fund assets in strict accordance with the relevant provisions of the CSRC:
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 CSRC has other provisions, it shall not be subject to the proportion restrictions in Items 1, 2 and 3 above.
If the fund investment does not conform to the above 2 and 3 items and the investment proportion agreed in the fund contract or the fund warrant investment plan due to factors other than the fund manager, such as fluctuations in the securities market, changes in the fund size, mergers of listed companies, and payment of consideration in the share trading reform, the Company will adjust and make it conform to the proportion within ten trading days.
2、 Investment strategy
Based on the analysis of the market value of warrants, coupled with the warrant pricing model, it seeks for a reasonable valuation level, takes active scientific investment management as a means, fully considers the profitability, liquidity and risk characteristics of warrant assets, and pursues stable current returns of fund assets through asset allocation, variety and category selection.
3、 Information disclosure
The information disclosure of the Fund's investment warrants shall comply with the Law of the People's Republic of China on Securities Investment Funds, the Administrative Measures for the Operation of Securities Investment Funds, the Administrative Measures for the Information Disclosure of Securities Investment Funds, the Fund Contract and other relevant provisions, and shall be publicly disclosed in the Fund's semi annual report, annual report and other regular reports, as well as the prospectus (update) of open-ended funds. If there are new rules, relevant information shall be disclosed in accordance with the new rules.
4、 Risk control
The Company has established and improved risk control measures for warrant investment, including investment decision-making, transaction execution, risk performance evaluation, supervision and audit, in accordance with the Securities Investment Fund Law, the Measures for the Operation and Management of Securities Investment Funds, the provisions of the CSRC and the Exchange on warrant investment, and the fund contracts of the Company's funds, mainly including:
1. Investment authorization control, the company's investment decision-making committee carries out strict authorization management on warrant investment.
2. Investment decision-making control: quantitative analysts dynamically calculate the fair value of warrants as an investment reference. Industry researchers closely track the underlying stocks corresponding to the warrants invested and proposed to be invested by the company, and assess the changes in the fair value of warrants caused by fundamental changes at any time. The fund manager, after fully listening to the opinions of researchers, In combination with the analysis of the underlying stock fundamentals, based on the judgment of the future trend of the underlying stock, and in combination with the warrant terms, fully evaluate the risk and return characteristics of the warrant, and under the premise of strict risk control, make investment within the specified investment proportion limit and according to the investment style of the fund. The investment director reviews the investment decisions of the fund manager. The fund manager shall not invest in the warrants whose underlying stocks have not entered the investment alternative pool.
3. For transaction risk control, the Central Trading Office will suspend the execution of trading instructions and immediately report to the company leaders and the Supervision and Audit Department in case of non-compliance with relevant laws and regulations and the company's investment management system.
4. Risk and performance evaluation control: quantitative analysts regularly analyze and evaluate the performance and risk of warrant investment, and feed back to the investment director and fund manager. The fund manager adjusts the portfolio within the scope of authorization, and the adjustment beyond the scope of authorization must be reported and approved as required before implementation.
5. Supervision, audit and compliance risk control. The Chief Inspector and the Company's Supervision and Audit Department inspect and supervise the compliance of the warrant investment management process.
5、 Risk warning
The Warrant is a high-risk financial securities product with leverage effect, which has certain price fluctuation risk, liquidity risk, timeliness risk and credit risk. The Fund Manager will invest in the Warrant based on the principle of prudence and risk control, but the Fund Unitholders should still pay special attention to the risk of net value fluctuation of the Fund due to the investment in the Warrant.
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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