don't look at the annualized rate of return for seven days, but mainly look at the net value of the day, which is what you can really get.

Due to the recent sharp drop in the interest rate of central bank bills and the sharp rise in the price of bonds held, the absolute deviation of money funds generally exceeds .5%. In order to control risks, money funds cashed in floating profits, which led to a sharp increase in the yield.

according to the notice on money market fund investment and other related issues, when the absolute value of the deviation between the net asset value determined by the shadow pricing method and the net asset value calculated by the amortized cost method reaches or exceeds .25%, the fund manager shall adjust the portfolio according to the needs of risk control, especially when the absolute value of the deviation reaches or exceeds .5%, the fund manager shall prepare and disclose an interim report.

money market funds will disclose "the number of times when the absolute value of deviation is above .5% (inclusive)", "the number of times when the absolute value of deviation is between .25% (inclusive) and .5%", "the highest value of deviation", "the lowest value of deviation" and "the simple average value of absolute value of deviation every working day" in their quarterly reports. On the one hand, this provision can narrow the gap between the net value calculated by the cost of the money fund and the actual net value calculated by the market price, so that the valuation of the money fund can go hand in hand with the market trend, and institutions can avoid using the gap between the two to suddenly improve the rate of return; On the other hand, it can also avoid investor arbitrage and treat new and old holders fairly.

The amortized cost method is a method to calculate the rate of return according to the cost, while the shadow pricing method calculates the fair rate of return of bonds with different maturities according to the market price information of the day, and uses these fair rates of return to value the fund portfolio. Because the market price fluctuates constantly, the rate of return obtained is different from the amortized cost method.

generally speaking, the positive deviation between amortized cost method and shadow pricing method is good. To a certain extent, this shows that the market price of investment products held by the fund has risen, which has gained more benefits for investors.