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In order to standardize the warrant investment operation of funds under Industrial 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 In accordance with the relevant provisions of laws, regulations and relevant fund contracts, the Company has formulated an investor's plan for the possible use of fund property investment warrants by its funds (the plan for investment in put warrants and the plan for investment warrants of its Industrial Convertible Bond Hybrid Fund have been previously announced), and now it is announced as follows:
1、 Proportion limit of fund investment warrants
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 same fund manager shall not exceed 10% of the warrant.
China CSRC If there are other provisions, they are not limited by the proportion of the above provisions.
Due to fluctuations in the securities market, changes in fund size 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 of Fund Investment Warrants
For the investment strategy of put warrants, please refer to the relevant announcements of the company before.
As for the investment strategy of the warrant, the Company believes that the warrant can be combined with the underlying stock to form products similar to convertible bonds. Therefore, the Company believes that the investment strategy in convertible bonds can also be applied to warrants.
The investment strategy of the Company's fund warrant is as follows:
1. Invest in the warrant with reference to the pricing and investment strategies of convertible bonds.
2. Carry out arbitrage or hedging operations in combination with put warrants and related positive shares.
3. Carry out warrant investment in a prudent manner, strictly limit the number and price of warrants purchased, and try not to change the original risk return characteristics of the Fund.
3、 Information disclosure mode of fund investment warrants
The Company will strictly comply with the Law of the People's Republic of China on Securities Investment Funds, the Administrative Measures for Information Disclosure of Securities Investment Funds, the relevant provisions of the CSRC, Shanghai Stock Exchange, Shenzhen Stock Exchange and the relevant provisions of the fund contract. The Company will disclose the specific types and quantities of fund investment warrants in the Fund's regular reports (quarterly reports, semi annual reports and annual reports).
4、 Risk disclosure
Due to the unique characteristics of warrants such as high leverage, high risk and high volatility, the behavior of funds investing in warrants may change the risk return characteristics of fund investment to a certain extent, reminding fund holders to pay special attention to the risk of fluctuations in fund net worth caused by investing in warrants.
It is hereby announced.
Industrial Fund Management Co., Ltd
December 16, 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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