Compared with all kinds of wealth management products, this capital preservation fund is an ideal substitute, because it first absolutely guarantees the safety of the principal, secondly, it is expected to obtain higher returns for investors than wealth management products, thirdly, it is more liquid than wealth management products, and fourthly, it is not inferior to wealth management products in safety.
Part I Product Introduction
Fund Name: Guotai Jin Lu Capital Protection Fund
Place of issue: china galaxy Securities, etc.
Custody Bank: Bank of China.
Fund code: 020008
Issue time: March 24th to April 25th, 2006.
Subscription rate:
Subscription amount (including subscription fee) subscription rate
Less than 500,000 yuan accounted for 0.8%
500,000 yuan (inclusive)-2 million yuan 0.4%
2 million yuan (inclusive)-5 million yuan 0.2%
More than 5 million yuan (inclusive) 1000 yuan/pen
Redemption rate:
Holding time redemption rate
Less than 6 months (inclusive) 1.8%
6 months to 2 years (inclusive) 1.0%
End date of insurance period 0
Capital preservation period: 2 years. From the effective date of the fund contract to the corresponding date two years later.
Capital preservation concept: investing in this fund can control the risk of principal loss. (1) Fund share holders subscribe for fund shares and hold them at maturity. If the redeemable amount plus the accumulated dividend amount during the capital preservation period is higher than or equal to its net investment, the fund manager will pay the investor according to the redeemable amount. (2) If the fund share holder subscribes for the fund share and holds it at maturity, and the redeemable amount plus the accumulated dividend amount during the capital preservation period is lower than its net investment, the guarantor shall guarantee to pay the above difference to the holder and pay it off to the fund share holder in time; On behalf of the fund share holders, the fund manager requires the fund guarantor to fulfill the guarantee obligations. If the fund share holder redeems but does not hold it due, this clause does not apply to the redeemed part. The capital preservation clause does not apply to the fund shares subscribed by the fund share holders.
Applicable conditions of the capital preservation clause: (1) Fund share holders subscribe for and hold the expired fund shares. (2) Before the expiration of the guarantee period of the Fund, the fund share holders can make the following choices. The capital preservation clause applies to their net investment after the expiration of the guarantee period: (1) Redeem the fund share after the expiration of the current period; (2) Transfer from this fund to other funds managed by the manager after the expiration of this period; (3) After the expiration of the guarantee period, the Fund meets the conditions for the existence of the capital preservation fund, and the fund share holders continue to hold the fund shares; (4) After the expiration of the guarantee period, the fund does not meet the conditions for the existence of the capital preservation fund, and the fund share holder converts its fund share into the changed fund share of "Cathay Pacific Jin Lu Value Growth Hybrid Securities Investment Fund".
If the capital preservation clause is not applicable: (1) The redeemable amount of the fund share holder on the expiration date of the insurance period plus the accumulated dividend amount during the capital preservation period shall not be less than the net investment of the fund share holder; (2) Fund shares subscribed by fund share holders during the insurance period; (3) Fund shares subscribed by fund share holders but redeemed before the expiration date (excluding the expiration date) of the insurance period; (4) Fund shares subscribed by fund share holders but converted before the expiration date (excluding the expiration date) of the insurance period; (5) The termination of the fund contract stipulated in the fund contract occurs during the insurance period; (VI) During the guarantee period, the Fund changes the fund manager, and the guarantor does not agree to assume the guarantee responsibility for the successor fund manager; (7) A force majeure event occurs, resulting in the loss of investment in the capital preservation fund or the guarantor's failure to perform the guarantee obligation.
Guarantor: Shanghai State-owned Assets Management Co., Ltd.
Main guarantee clauses: the nature of the guarantee is irrevocable joint liability guarantee; The scope of protection is the redeemable amount held by the fund share holders who have subscribed to the Fund at maturity plus the difference between the accumulated dividend amount and its net investment during the capital preservation period; The guarantee period is 6 months from the expiration of the fund guarantee period.
Investment objective: Under the premise of ensuring the safety of the principal, strive to realize the appreciation of the fund property at the end of the fund period.
Investment philosophy: the price will ultimately reflect the value.
Scope of investment: The Fund is a capital preservation and value-added hybrid fund, and its investment scope includes all kinds of bonds, stocks and other financial instruments permitted by China Securities Regulatory Commission.
Asset allocation ratio: the proportion of the Fund's investment in bonds is not less than 60% of the Fund's assets, the proportion of its investment in stocks, warrants and other assets is not more than 30% of the Fund's assets, and the proportion of its investment in cash or government bonds with a maturity of less than one year is not less than 5% of the Fund's net asset value.
Overall investment strategy: The Fund adopts the investment strategy of combining fixed proportion portfolio insurance (CPPI) technology and option-based portfolio insurance (OBPI) technology. Realize principal security by quantifying asset generic allocation. The net inflow of cash invested in fixed-income securities is used to offset the potential maximum loss of venture portfolio, and capital gains are obtained by investing in risky assets such as convertible bonds and stocks. The main capital preservation technology of the fund is CPPI technology. In the specific operation process, CPPI technology is mainly used to determine the proportion of safe assets and risky assets, while OBPI technology is mainly used for the investment of convertible bonds, which is a necessary supplement based on CPPI technology.
Asset allocation strategy: in the allocation of risky assets and safe assets, the maximum possible losses of different generic assets in the risky asset portfolio are calculated by predicting the forward interest rate, extreme market price and other parameters, and the magnification of different generic assets is obtained accordingly. According to the profit and loss of venture capital, dynamically adjust the weight of risk assets and security assets.
Bond investment strategy: the fund's investment in bonds other than convertible bonds is divided into two parts. One part adopts passive asset-liability management strategy to offset the possible losses of risky asset portfolios such as convertible bonds with its net cash inflow. The other part adopts active bond investment strategy, which is mainly based on the analysis of long-term interest rate trend, combined with the analysis of short-term economic cycle, macro-policy direction and yield curve, and implements active bond portfolio management through bond replacement and yield curve allocation.
Convertible bond investment strategy: The Fund uses the binary tree model widely used in the world to calculate the option value of convertible bonds, evaluates the relative value of convertible bonds in combination with the bond value of convertible bonds, and determines the final convertible bond investment portfolio according to the premium rate ranking and industry fund allocation.
Stock investment strategy: The Fund grasps the risk-free arbitrage opportunity between convertible bonds and stocks. Carefully participate in the initial public offering and additional issuance of stocks in the primary market in order to obtain profits between the primary and secondary markets. When constructing the stock portfolio, we adopt the top-down method, combining quantitative analysis with qualitative analysis, effectively avoiding the unsystematic risks of individual stocks through portfolio management, determining the advantageous industries and corresponding proportions to be invested through industry selection, and excavating listed companies with outstanding growth potential and underestimated by the current market through individual stock selection.
Warrant investment strategy: The Fund mainly uses the internationally accepted warrant pricing model to price warrants, and corrects the relevant parameters, especially the implied volatility of the stock price, according to the actual market situation, and obtains the theoretical price of warrants as the basic basis for fund investment warrants. The Fund's investment warrants are mainly used to lock in income and control risks.
Fund Manager: (1) Mr. He Min, FRM (American Financial Risk Manager). Master of Finance (Master of Financial Economics), London School of Economics (LSE), UK, with 8 years experience in securities industry. 1998 joined cathay pacific fund Management Co., Ltd. in July, and successively served as industry researcher of listed companies in R&D department, head of comprehensive research group (including bond research), assistant to fund manager in fund management department and fixed income department, responsible for industry research and bond research of listed companies, and assisting in managing bond assets investment of closed-end and open-end funds of companies. At present, he is the fund manager of Cathay Golden Dragon Bond Fund and Cathay Golden Elephant Capital Preservation and Value-added Mixed Fund. (2) Mr. Huang Yan, Master of Finance, 10 years of securities experience. He once worked in the Investment Management Center of Ping An Group, Shenzhen Heli Investment Development Company and Shenzhen Company, an intermediate international futures company, and joined cathay pacific fund Management Co., Ltd. in June 5438+ 10, 2003. He used to be an assistant fund manager of Jintai Fund, and now he is supporting fund research: in order to ensure the realization of the investment objectives stipulated in the fund contract, the fund is specially equipped with researchers who are proficient in fundamental research and quantitative analysis to assist the fund manager in investment management. The R&D department makes investment suggestions based on the analysis of macroeconomic development trends, interest rate trends and industry stocks; The financial engineering department is responsible for quantitative analysis, and puts forward investment feasibility analysis according to the results of historical simulation and risk measurement.
Time limit for opening positions: within 3 months from the effective date of the fund contract, make the investment portfolio ratio of the fund conform to the agreement of the fund contract.
Performance measurement benchmark: after-tax rate of return on 2-year bank time deposits
Risk-return characteristics: this fund belongs to the low-risk variety of securities investment funds. Investors who subscribe and hold expired fund shares during the fund raising period can get the guarantee of net investment capital preservation. Fund shares that are not held due for redemption and purchased fund shares do not enjoy capital preservation protection.
Part II Fund Performance
Comments: cathay pacific fund Management Co., Ltd., as an established company, has a rich variety of funds, a large number of funds, good performance and good risk control in the process of investment operation. The risk level of most funds is low. What is particularly worthy of investors' attention is that the company already has a capital preservation fund-Guotai Golden Elephant Capital Preservation, and the net growth rate of this fund in the past month is the first among similar funds. The fund was established in June 2004 at 5438+065438+ 10/0, and has achieved 6.88% income so far, which is a good example for this new capital preservation fund that is currently being issued.
The third part is product analysis.
According to the Evaluation System of Fund Management Company's Stock Investment Management Capability of china galaxy Securities Fund Research Center, the stock investment management capability of cathay pacific fund Management Company ranked 1 1 among 24 fund companies in 2004 and 2 1 among 34 fund companies in the first half of 2005. (As the annual report of the Fund has not been disclosed, the above statistics can only be conducted in the first half of 2005. )
Since the beginning of this year, the investment performance of cathay pacific fund Management Company has been greatly improved. As shown in the above table, the performance rankings of various open-end funds are in the front position.
The capital preservation fund adopts special CPPI technology, takes fixed-income assets as the main investment target, and participates in the investment of risky assets-stock market in an appropriate way under the condition of controllable risks, in order to obtain higher returns.
Capital preservation fund is a special type of fund, with locked risks and expected high returns. The market demand space is large, which is suitable for the special investment needs of many customers.
In view of the special bond investment strategy of capital preservation fund, its investment strategy for fixed income assets is similar to that of short-term bond funds which are very popular in the market at present, and the risk is lower than that of short-term bonds.
Compared with all kinds of wealth management products, this capital preservation fund is an ideal substitute, because it first absolutely guarantees the safety of the principal, secondly, it is expected to obtain higher returns for investors than wealth management products, thirdly, it is more liquid than wealth management products, and fourthly, it is not inferior to wealth management products in safety.
The introduction of this capital preservation fund, and the second capital preservation fund in a fund management company, reflects the special perspective of cathay pacific fund management company in product opening, because investors with capital preservation needs always exist.
Because it is a capital preservation fund, the subscription rate of this fund is low.
Compared with the existing capital preservation fund, this is the first capital preservation fund with a capital preservation period of two years, which is convenient for investors to make personal financial arrangements. Moreover, cathay pacific fund Management Company made this choice of capital preservation cycle according to the needs of customers.
Compared with the existing capital preservation fund, the fund has greatly improved the arrangement of redemption rate, showing better human characteristics, that is, it not only reduces the charging standard, but also implements a flexible redemption rate standard that decreases with the holding time, greatly reducing the cost of investors and facilitating investors with special needs.
Mr. He Min, the proposed fund manager, is currently the fund manager of Cathay Golden Dragon Bond Fund and Cathay Golden Elephant Capital Preservation and Value-added Hybrid Fund, and will manage the three funds at the same time in the future, making him the second fund manager in the market.
Different from other fund managers in the current market, as a fund manager with one person, one investment and three people, investors don't have to worry about his ability and energy, because first of all, he has rich experience in managing capital preservation funds, secondly, bond investment is very different from stock investment, and thirdly, Mr. Yan Huang, another fund manager equipped by the company for this fund, is responsible for stock investment.
The risk-return characteristics of the fund are accurately positioned.
The performance benchmark of the Fund is "2-year bank time deposit after-tax rate of return", which provides investors with a better reference for future income. In view of the company background, product background and fund manager background of the Fund, the expected income of the Fund is expected to be higher than this benchmark.
The fund has set a ceiling of 5 billion shares, so investors who need to subscribe should subscribe in time. Fund manager of Thailand fund.