what do you mean by regular conversion of graded funds?

regular conversion means that Grade A pays dividends regularly every year, but not in cash. Instead, it converts the agreed income of Grade A into the share of the parent fund and pays it to investors.

upward conversion: when the net value of the parent fund of the graded fund rises to a certain price, the graded fund will be upward converted. At the time of discount, the part exceeding the net value of 1 will be distributed to the holders of share A and share B in the form of parent.

downward conversion: when the net value of share B falls to a certain price, the graded fund will be downward converted according to the contract. After the downward conversion, the net value of share B will return to the initial net value of 1, and the share of share B holders will be reduced according to a certain proportion.