Fund conversion is the conversion of fund shares. Fund share conversion means that on the premise that the net asset value of the fund remains unchanged, the total number of fund shares is adjusted according to a certain proportion, so that the net value of fund units is reduced accordingly.

After the unit conversion, the total number of fund units and the amount of fund units held by the holder will be adjusted, but the adjusted proportion of fund units held by the holder to the total fund units will not change. Share conversion has no substantial impact on the holders’ rights and interests. For details, please refer to the relevant announcements on share conversion of each fund.

Fund shares are publicly issued to investors, indicating that the holder has the right to income distribution, the right to acquire the remaining property after liquidation and other related rights to the fund property based on the shares he holds, and is a certificate that assumes corresponding obligations. .

The end date of the capital verification is the fund share conversion day. The fund manager will convert the fund shares so that the net value of the fund shares on the day the capital verification ends is 1.0000 yuan, and then calculate the amount that investors should receive from the centralized subscription based on the net value of the fund shares on that day. Fund shares shall be registered and confirmed by the registration agency for investors’ centralized subscription of shares.

The fund manager will make an announcement on the confirmation of units for centralized subscription, the conversion results of fund units, etc.

Extended information

Fund conversion is divided into regular conversion and irregular conversion:

1. Regular conversion:

Graded funds The process of distributing income to Class A holders at an agreed time according to the agreed interest rate level. In the regular conversion, the net value of Class A is reclassified to 1, and the part with a net value higher than 1 is converted into FOF shares and distributed to Class A investors according to the net value of the FOF at that time. The Class B shares and net value are not adjusted.

2. Irregular conversion

Irregular conversion is divided into upward conversion (referred to as upper discount) and downward conversion (referred to as downward discount).

Upward conversion means that when the net value of the parent fund reaches a certain set level (such as 1.500 or 2.000), the net values ??of grades A and B will be reclassified to 1, and the parts with net values ??exceeding 1 will be converted into The process of fund of funds shares. The upward discount is actually a process of leverage retracement.

Downward conversion means that when the net value of Class B is lower than a certain level (usually 0.25), the net value of Class A and B is reclassified to 1, and the share of Class B is calculated according to a certain proportion (in the net value The proportion is 1/4 when the net worth level is 0.25) is reduced, the shares corresponding to B in grade A remain unchanged, and other shares (the proportion is 3/4 when the net worth level is 0.25) are converted into parent fund shares.

Baidu Encyclopedia - Fund Conversion

Baidu Encyclopedia - Graded Fund Conversion