Some time ago, due to the sharp market decline, many tiered funds triggered downward discounts. In order to let you understand the principles of discounts on graded funds, the risks of discounts and other issues, we have summarized the relevant issues for your reference.
(The following assumptions: ① Class A share: Class B share = 1:1, that is, share leverage is 2; ② Class B discount trigger point is 0.25 yuan.)
1. What Is it the downward discount of tiered funds?
When the B-class net worth is lower than 0.25 yuan, the hierarchical fund will be triggered to adjust the downward irregular conversion threshold.
The net value of the fund of funds fell, but the net value of class A increased steadily, causing the net value of class B to fall rapidly, and the leverage continued to increase (leverage = net value of the fund of funds ÷ net value of class B × 2). After conversion, Class B leverage is restored to 2 times.
2. How will the net value, share and price change after the discount?
For example: On a certain day as the conversion base date, the net value of the parent fund is 0.64 yuan, the net value of Class A is 1.03 yuan, and the net value of Class B is 0.25 yuan. In the secondary market, the price of grade A is 0.85 yuan and the price of grade B is 0.5 yuan.
(1) A bought 10,000 shares (shares) of Class B at a cost of 5,000 yuan; after discounting, he directly lost 2,500 yuan. It is strongly recommended not to buy Class B on the conversion base date!
Status
Net worth
Share
Price
Market value
Before discount
0.25 yuan
10,000 copies
0.5 yuan
5,000 yuan
After discount
1.00 yuan
2500 copies
1.0 yuan (note)
2500 yuan
Note: Class B resumption price = 1 Yuan + profit and loss of the previous trading day, the processing here is simplified (the previous day's increase or decrease is not considered), then the opening price is 1 yuan.
The example of buying on the conversion base day is relatively extreme, but in reality there are cases where customers do not understand the operating principles of tiered funds and buy by mistake. At the same time, when the discount period is approaching, if the B-level holdings continue to fall by the limit and cannot be sold, serious losses will occur.
(2) B bought 10,000 Class A shares at a cost of 8,500 yuan; after discount, the market value was 10,300 yuan, making a profit of 1,800 yuan.
After the discount, Class A shares will remain the same as Class B shares, and the excess net value will be distributed in the form of a parent fund.
Status
Net worth
Share
Price
Market value
Before discount
1.03 yuan
10,000 copies
0.85 yuan
8,500 yuan
After discount
A: 1.00 yuan
Mother: 1.00 yuan
A: 2500 copies
Mother: 7800 copies
A: 1.00 Yuan
Mother: 1.00 yuan
10,300 yuan
Note: A-level resumption price = 1 yuan + the agreed profit on the previous working day, which is simply processed here ( Excluding one day's agreed profit), the opening price is 1 yuan.
After the discount, because Class B has a requirement to restore the premium level, and investors sell Class A after the parent fund is split, Class A may continue to fall to the limit, and the profit level may be lower than the above theoretical calculation. value.
(3) C holds 10,000 funds of funds, with a market value of 6,400 yuan, and there is no change after the discount.
Status
Net worth
Share
Price
Market value
Before discount
0.64 yuan
10,000 copies
-
6,400 yuan
After discount
< p>1.00 yuan6,400 copies
-
6,400 yuan
3. After the discount, when will the loss of Class B be realized? Make up for it?
After the discount, the premium between the Class B secondary market price and the net value will be smoothed out. The increase in the price of Class B depends on the one hand, the increase in the net value of the parent fund, and on the other hand, it also depends on the supply and demand relationship for Class B in the secondary market. If the market improves and investors are willing to pursue leveraged products, the level of Class B premiums may rise rapidly and secondary market prices continue to rise. If the B-class premium level is too large before the discount, a larger increase will still be needed to fully make up for the loss.
4. Before the discount, can we reduce losses by buying an equal number of Class A shares and merging them with Class B before redeeming the parent fund?
If (A-level price + B-level price) ÷2 ≤ net value of the parent fund, this situation can reduce losses; anyway, losses cannot be reduced.
At the same time, special attention needs to be paid to the timing of purchase, merger and redemption: (1) Graded funds listed on the Shanghai Stock Exchange: buy Class A and Class B on T day, merge on T day, and redeem on T day; ( 2) Classified funds listed on the Shenzhen Stock Exchange: buy Class A and Class B on T day, merge on T day, and redeem on T+1 (brokers without this function can only buy Class A and B class on T day, T+ Merger on the 1st, redemption on T+2). Redemptions are based on the net liquidation value on that day.
The above time difference may cause the operation results to be inconsistent with the loss value at the time of operation.
Secondly, if it is judged that Class B will continue to fall to the limit in the future (cannot be sold), it is also feasible to stop losses in advance through the above method.
Again, generally speaking, Class B triggers downward conversion, and the fund merger and spin-off business (also known as matching conversion business) is suspended on the conversion base day and the next trading day.