(1) Between the holder and the manager, the fund holder is the actual owner of the fund, while the fund manager is an institution that makes investment decisions with the help of professional knowledge and experience according to laws and regulations, fund articles of association or fund contracts, with the aim of increasing the value of the managed fund assets and obtaining as much income as possible for the fund holder. Therefore, the relationship between fund holders and fund managers is essentially the relationship between owners and managers.

(2) The relationship between the administrator and the custodian is the relationship between management and supervision. Fund managers and fund custodians are administratively and financially independent of each other, and their senior managers may not hold any positions in each other. The fund manager is composed of investment experts and is responsible for the operation of fund assets; The custodian shall be a financial institution recognized by the competent authority, be responsible for the custody of the fund assets, dispose of the fund assets according to the instructions of the fund management institution, and supervise whether the investment operation of the manager is legal and compliant. As far as fund managers are concerned, dealing with specific matters related to securities and cash receipts and payments is entrusted to fund custodians, so that they can concentrate on asset utilization and investment decision-making. Both the fund manager and the fund custodian are responsible to the fund holder.

(3) The relationship between the holder and the custodian is entrusted and entrusted, and the holder entrusts the fund assets to the fund custodian to ensure the safety of the fund assets. The fund custodian must be responsible to the fund holder, supervise the behavior of the fund manager, make its business behavior conform to the requirements of laws and regulations, perform due diligence on the fund holder, ensure the safety of assets and improve the return on assets.

(This article refers to the related articles of China Merchants Fund Company)