1. The fund prospectus stipulates that the redemption fee charged for the fund shares of Class A funds with a holding period of less than 30 days shall be fully included in the fund property.
2. 75% of the redemption fee charged for the fund shares of Class A funds with a holding period of not less than 30 days but less than 3 months shall be included in the fund property.
Therefore, when Class A share holders have a huge redemption, they will generate a lot of redemption fees, which will be included in the fund assets with few remaining shares, and the net value of the fund will skyrocket.
The huge redemption of the fund means that the net redemption amount of the open-end fund on that day exceeds 10% of the fund size, in which the net redemption application for a single open day refers to the sum of the redemption application of the fund plus the transfer-out application of the fund when the fund is converted, and the balance after deducting the sum of the subscription application of the fund and the transfer-in application of the fund when the fund is converted.
Faced with this situation, the fund manager can postpone the remaining redemption application or accept full redemption on the premise that the proportion of redemption accepted on the same day is not less than 10% of the total fund share of the previous day, that is, when the fund manager thinks that he has the ability to pay the investor's full redemption application, he will follow the normal redemption procedure.
Investors can choose two ways: continuous redemption or cancellation of redemption. Continuous redemption means that investors choose to redeem the deferred redemption application on the next fund open day in turn.
What is the impact of huge redemption on the net value of the fund?
1. There will be a corresponding handling fee for fund redemption, and a large amount of handling fee will be deducted for large redemption. According to the provisions of the fund contract, part of the fund redemption fee will be merged into the fund assets, resulting in an increase in the net value.
For example, for a fund with a scale of 6,543.8+0,000 shares and a unit net value of 654.38+0 yuan, the holder redeems 950,000 shares, and the remaining 50,000 shares, after deducting the handling fee: 95 * 654.38+0.5% = 654.38+0.425 (ten thousand yuan), assuming that all these redemption fees are incorporated into the fund assets.
Generally, in order to avoid this situation, the administrator will also provide some redemption strategies for redeemed investors, such as batch redemption. Under the condition that the remaining assets of investors account for a large proportion of the total assets of the fund after the first redemption, the second redemption can take away most of the remaining redemption fees from the first redemption.
2. In the second case, when there is a huge redemption and the reserved digits of the fund's net value are rounded off, the resulting gains or losses are borne by the fund assets. Generally, the net fund value is retained to the fourth place after the decimal point, and this figure is accurate enough if the share ratio is small. However, if there is a huge redemption, an abnormal situation may occur.