It is to divide an expensive fund into small parts, just like shrinking it in proportion, making it cheaper and lowering the investment threshold. Moreover, the rise and fall of this small fund echoes the rise and fall of big funds. Big funds go up, so do they. According to a certain proportion, just like your shrinking shadow on the ground, how to move? It's just smaller than you.
Financial institutions such as insurance companies absorb some funds in the market, and then divide the unit value of funds to achieve the purpose of lowering the investment threshold. For example, the current unit net value of Merrill Lynch Latin America Fund is about 57.62 US dollars, while the shadow fund established by Zurich Life Insurance is only 65,438 US dollars +0.694 US dollars. Just like looking in the mirror, each shadow fund corresponds to a fund that is publicly issued in the market. This fund is called the original fund. All the assets of the shadow fund will be invested in the original fund. Although the net unit value of shadow fund is very different from that of the original fund, the rise and fall of the net unit value is very close to that of the original fund. Shadow funds are very different from "funds within funds" (FOF). Investors don't know what kind of fund they bought at FOF. However, the funds contained in shadow funds are chosen by investors themselves and can be freely converted within the department.
With the disclosure of Public Offering of Fund's financial report in the fourth quarter of 2022, the allocation direction of public offering assets surfaced, givi