Innovating steadily and opening a new chapter of sealing foundation

Compared with open-end funds, closed-end funds have the advantages of fixed scale, investment operation unaffected by investors' entry and exit, and high investment efficiency. However, the long-term high discount rate has seriously affected the development of closed-end funds in China. Dacheng Preferred Stock Securities Investment Fund (hereinafter referred to as "Dacheng Preferred Fund") has adopted various methods and measures in product design to reduce and eliminate the high discount rate.

(1) Fund investment is more flexible.

The proportion of short-term financial instruments with a maturity of less than one year such as cash and government bonds can be at least 0; Can invest in non-public offering of shares and other high proportion of restricted circulation securities; It is also possible to issue financial derivatives such as warrants and invest in stock index futures under the conditions permitted by laws, regulations or regulatory agencies, so as to improve fund returns and strengthen risk control.

(2) Further improve the fund governance structure.

A. hold regular fund share holders' meetings every year.

B. Establish a performance risk reserve to protect the interests of investors. The fund manager draws 10% from the fund management fee as the performance risk reserve every month to make up for the amount that the growth rate of the fund's net value is lower than the growth rate of the performance benchmark.

C. implement appropriate incentives for fund managers. The proportion of annual performance reward extraction is 65,438+00%, but the rate of return of the fund's extractable performance reward shall not be less than 6%, and it is the maximum value of 5% of the difference between the benchmark growth rate of fund performance in the same period and the weighted average growth rate of net assets of all comparable funds in the same period. Among them, comparable funds in the same period refer to stock-based securities investment funds, including open-end funds and closed-end funds, whose fund contracts have taken effect before the time interval corresponding to the current performance reward. The sum of the performance remuneration extracted each year and the fund management fee extracted in that year shall not exceed 5% of the average net asset value of the initial fund.

(3) Reduce the discount rate through the allocation of funds

Under the premise of meeting the relevant conditions, the Fund will distribute the income at least twice a year, and the proportion of each income distribution shall not be less than 60% of the net income.

(4) Introducing "Lifeboat Clause" for the first time.

After the fund contract comes into effect 1 year, if the discount rate of the fund exceeds 20% for 50 consecutive trading days, it can be converted into a listed open-end fund (LOF) by holding a fund share holders' meeting and accepting investors' redemption applications.

(5) More adequate information disclosure.

Information disclosure includes disclosing the net value of fund shares every trading day; Update the prospectus regularly; In the annual report, semi-annual report and quarterly report, information disclosure should be added according to product characteristics.

From the characteristics, this fund can be said to be very flexible, effectively eliminating the hidden dangers of high discount, and the investment scope of this fund is also relatively wide, so we might as well take out some funds to try.