Announcement date: 2018-10-31
Penghua CSI National Defense Index grading securities investment fund may have irregular share conversion
Risk warning announcement
According to the relevant provisions of the “Penghua Zhongzheng National Defense Index Classification Securities Investment Fund Fund Contract” (hereinafter referred to as “the fund contract”) regarding the non-period share conversion, the fund share of the B share of the Penghua Zhongzheng National Defense Index grading securities investment fund When the reference net value falls to 0.250 yuan, Penghua defense grading share (intra-market abbreviation: national defense grading, basic share), Penghua defense A share (intra-market abbreviation: national defense A), Penghua defense B share (intra-market abbreviation: national defense B) Unscheduled share conversion will be carried out.
Due to the recent volatility of the A-share market, as of October 30, 2018, the net value of the fund share of the National Defense B is close to the non-period share conversion conditions stipulated in the fund contract. Therefore, the fund manager invites investors to pay close attention to the recent defense B. Refer to the fluctuations in net worth and be alert to possible risks.
In response to the risks arising from non-periodic conversions, the Fund Manager’s special tips are as follows:
1. Due to the possible existence of a discounted premium transaction before the defense A and the defense B are converted, the discount rate of the defense A and the defense B may change significantly after the irregular share is converted. Investors who participate in secondary market transactions are specifically advised to pay attention to the risks posed by high premiums.
Second, National Defense B is characterized by high risk and high returns. After the irregular share is converted, its leverage will return to the initial leverage level.
3. Due to the triggering of the conversion threshold, the reference net value of National Defense B may have been lower than the threshold, and the conversion base date can be determined after the trigger threshold date. The net value of National Defense B may be converted to the discount threshold.
There is a certain difference between 0.250 yuan.
4. National Defense A is characterized by low risk and relatively stable returns. However, after the irregular share is converted, the risk-return characteristics of the holders of National Defense A will change greatly, and the national defense A will be changed by holding a single lower risk return. In order to simultaneously hold the lower risky return characteristics of the defense A and the higher risk return characteristics of the defense classification, the uncertainty of the expected income realization of the defense A holders will increase.
Other important tips for the Fund Manager:
1. According to the relevant business rules of the Shenzhen Stock Exchange, the number of shares in the market will be rounded up (the minimum unit is 1), the part of the deduction will be included in the fund assets, and the minimum number of defense grading, defense A, and defense B will be held. The holder has the risk of being forced into the fund's assets because the share is converted to less than one share.
2. In order to ensure the smooth operation of the Fund during the conversion period, the fund manager may suspend the defense A share and defense according to the relevant business regulations of Shenzhen Stock Exchange and China Securities Depository and Clearing Co., Ltd.
B-share listing transactions and subscription and redemption of Penghua defense grading shares. At that time, the fund manager will announce the relevant matters, and investors are advised to pay attention.
If investors want to know the details of the fund's irregular share conversion business, please refer to the fund's fund contract and the "Penghua CSI Defense Index Classified Securities Investment Fund Prospectus" (update) (hereinafter referred to as "the prospectus") or call the company Customer service phone: 400-6788-999 (free long distance call).
3. The fund manager promises to manage and use the fund assets in a principle of honesty, credit and diligence, but does not guarantee that the fund will be profitable or guarantee the minimum income.
The fund manager reminds investors of the “buyers' self-sufficiency” principle of investment in funds. After making investment decisions, the investment risks caused by changes in the fund's operating conditions and the net value of the fund are borne by the investors themselves. Investment is risky and the choice must be cautious. Investors are advised to carefully read the Fund's fund contract and prospectus and other relevant legal documents before investing.
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