This low-priced large-scale sale may trigger a further plunge in the stock price of the risk target. But even in this extreme situation, fund managers have other safeguard measures or tools to deal with investors' redemption, and passive lightening is just one of the ways to deal with it.
Through the huge redemption clause, investors are restricted from redeeming open-end funds in the market. This clause will stipulate that when the net redemption share (that is, the redemption share minus the subscription share) accounts for 65,438+00% of the total fund share (the proportion of fixed-term open-end funds is 20%), the fund manager can respond to the redemption request as appropriate.
If the fund manager thinks that accepting full redemption is not conducive to the operation of the fund, he can announce a partial postponement of redemption, and postpone the redemption application exceeding 10% (or 20%) to the next working day. The existence of the huge redemption clause can give fund managers more discretion and have time to deal with the liquidity crisis brought about by large-scale redemption.
If the market environment improves on the second trading day, the redemption scale of the fund will also be reduced, and the fund manager will well avoid the passive lightening operation.
Restrict investors' redemption by suspending redemption clauses. When the redemption application delayed by more than 10% (or 20%) still cannot solve the liquidity problem, the fund manager can also reject all investors' redemption applications according to the suspension clause set in the fund contract, and the suspension interval can be up to 20 working days.
On the premise of suspending redemption, fund managers don't have to lighten their positions passively, and they still have time to observe the market trend. If the manager thinks that the subsequent market has a chance to rebound, he can still hold assets continuously.
Only when the manager judges that the market outlook is difficult to improve in the short term will it lead to passive lightening, which is likely to lead to a greater decline in the whole market.
By delaying the payment of redemption money to avoid passive lightening, the fund manager can also delay the payment of redemption money as appropriate when agreeing to the investor's redemption application. Unlike restricted redemption and suspended redemption, investors in the former two still hold fund shares, while delaying the payment of redemption money only delays the payment of redemption funds by investors.
Although the investor who applied for redemption has redeemed the fund share, the fund manager can delay the payment of the redemption money according to the contract, leaving some time to wait and see the market and make a choice.
The above are the coping methods that fund managers can take when they encounter large-scale fund redemption, but these coping methods can only temporarily alleviate the lack of liquidity and delay the time of passive reduction. If the market risk and underlying risk cannot be solved in a short time, and the fundamental problem of investors' massive redemption cannot be solved, fund managers will eventually passively lighten their positions.
Under normal circumstances, only when there is a large-scale redemption of funds in the whole market will there be a risk of aggravating the decline. The large-scale redemption of a single fund can be properly solved by most managers through personal experience and professional ability, and investors need not worry too much.
Investors should pay attention to the fact that when a single fund holder is single, or the share of a single institution or individual holding the fund is too high, the fund is more prone to large redemption than other funds. Investors should try to avoid such funds and reduce the possibility of large-scale redemption of their own funds.