At the beginning of the establishment of Guo Fu Military Industry A and B, its leverage ratio was twice that of the original. When the net value of the military parent fund reaches 1 yuan, the leverage becomes the lowest; If the net value of Military B is RMB, the leverage is up to 5 times. In order to keep the leverage ratio of the Fund within a reasonable range, after adjustment and irregular conversion, Guo Fu Military Industry (16 1024), Military Industry A( 150 18 1) and Military Industry B (1) Military B has returned to twice the initial leverage, becoming the military index fund with the highest leverage ratio in the field.
The key to "upward conversion" is to earn more money-the increase of fund net value must reach a certain height, otherwise, it is impossible.
For example, when 200 yuan, the parent fund, invests in the market, the distribution of expected annualized expected return is artificially divided into share A (100) and share B (100). Regardless of 200 yuan's investment profit and loss, A shares the expected annualized expected income of 6% every year, and the rest belongs to B, so it can be understood that A borrowed 100 yuan from B for investment.
One year later, when 200 yuan invested in 300 yuan (that is, the parent fund 200 yuan rose by 50%), the total assets of A share were 106 yuan, while the assets of B share were 194 yuan. At this time, 194 yuan can only be used for borrowing and investing, so that more money can be borrowed for B share (professional vocabulary is called increasing leverage) and "upward conversion" can be realized.