| With the development of our capital market, the situation which from weak to strong, from small to large, from system-absent to system- consummate, from individual investors to institutional investors has become more and more clear. On the one hand, such a market is extended by the constant financial innovation, one the other hand, the scale of the market is extended by the savings with the open-end funds distribution and marketing activities. However, the investors generally are for a lack of deeply understanding about the characteristics and risk of closed-end funds. At the same time, the closed-end fund to the open-end fund with the price discounts is also hard for them to understand.Refer to the investment of closed-end funds, investors have been unable to avoid the existence of two issues, one is the reasons for the closed-end fund discounts, the other is closed-end fund discount rate's changing trend. First, the state that the price of closed-end fund is of a long-term departure with the net asset value is ubiquitous in both domestic capital market and foreign capital markets. Because causes are difficult to explain, it is called'the Closed-end Fund Discount Puzzle'. Secondly, the closed-end fund discount rate is within the range of 10% -20% in the US, while that is much larger in emerging markets. Though the closed-end funds discount rate varies in different market, the large fluctuations make most investors headache. After a long development and evolution, there are many features should be drawn on the closed-end funds of the United States. More investment attractiveness on closed-end funds are increased by financial innovation. The supply-demand relations are improved. The discount levels of closed-end funds are narrowed effectively. Except for Lifeboats Terms, we can draw following aspects from the American experience: A. Closed-end funds regular dividends system is conducive to narrowing the discount; B. Proper use of leverage can narrow the discount and increase revenue; C. The specific rights such as allotment option are the powerful guarantee that the closed-end funds not discount substantially; D. Global equity and bond type of closed-end fund receipts advantages become even more obvious.The closed-end funds which use leverage to increase revenue should be paid more attentions because this kind of closed-end fund may magnify the receipt of stock type closed-end under the background that the closed-end funds'receipt are less than the open-end funds'. That may improve the status which market investors excessively pursue the open-end funds and snub the closed-end funds. There are opportunities to improve the level of income of the set financial products.After Dacheng innovative optimization securities investment fund shares, the closed-end fund based on the lifeboat term, the China Securities Regulatory Commission ratified the innovative item that a kind of closed-end fund appropriate used leverage - UBS SDIC Ruifu classification stock fund on June 26, 2007.Ruifu classification stock fund as an innovative closed-end funds, brokerage clients asset management sector investment, the existence of outstanding investment value, which reflects the value of investment in what context, how such funds are the proceeds characteristics, may face the future the level of risk that these will be the focus of this paper is to explore and research.Simple view, the Fund is the one and only innovative internal structure of the classification fund now. The Fund is an open-end and closed-end funds combined classification. Through income distribution arrangements, the Fund shares will be divided into different risk and expected return of the two-level, they are Ruifu Priority and Ruifu Enterprising. Priority share of the proceeds will be a cash flow relative stability, sustained characteristics. Enterprising share transfer the right of priority allocation of the priority share benchmark yield, acquiring a higher proportion of the excess income distribution rights. We can find Ruifu Enterprising is different from the traditional closed-end funds, closed-end integration of a variety of fund products abroad experience, to lower the discount. The use of levers, in the bull market expansion proceeds. In trading system, Ruifu Enterprising has been completed, the purchase will be closed and redemption features listed in the Shenzhen Stock Exchange, closed-end funds similar to the existing products, and Ruifu Priority will only share in the OTC markets regularly open Fund purchase, redemption, not listed transactions, and plans to "one-year time deposits yield +3%" such as a share of the benchmark yield, some of the excess proceeds from the share of each Ruifu Priority and Ruifu Enterprising by 1:9's share percentage share. Ruifu Priority and Ruifu Enterprising collection ratio is 1:1, therefore, the excess part, the progressive-class levers of 1.8, in the bull market, the aggressive high-level access to the excess proceeds to narrow the discount.Through comprehensive analysis, the fund managers UBS Investment fund management companies in the Mainland China's first foreign shareholding limit to the highest proportion (49 percent) of joint venture fund management companies. Shareholders voted for the country Trust and Investment Corporation Limited and UBS (UBS AG), the holders of the respective companies 51% and 49% stake. The fund companies introduce foreign shareholders and the use of investment research tools, and inheriting UBS Global Asset Management's investment philosophy, UBS Global Asset Management in the global market proven investment approach the actual situation of China's territory, constant improvements. With strong grounding for research and extensive experience in the domestic and international research team for a comprehensive introduction of UBS Global Asset Management to invest in research and analysis system and risk management systems, and a strong UBS Global Asset Management team of close cooperation, sharing of global wisdom. Currently the fund companies management 3 closed-end fund and a closed-end fund, as of June 22, 2007, assets under management total scale of more than 8.8 billion yuan. UBS Investment Fund Company's latest core in my bank fund companies, the company's stock-fund industry boom and Investment UBS foundation funds went into the company, consolidated results better. The product's innovative design analysis can be seen: its product design different from the rumors circulating in the market before innovative closed-end funds on the various ideas, personality distinct. The design of the whole product, the market for the discount issues of common concern, the fund classification in the fund shares on the basis of different risk return characteristics of the different income levels, share a distribution plan, a listed high-risk transactions with the Fund share the unique pricing mechanism and to form an effective discount inhibitory mechanisms, and to support low-risk share of the proceeds and principal protection schemes to ensure that high-risk transactions listed share pricing mechanism efficient operation, the normal discount inhibition mechanisms play a role, effectively inhibiting long time, the non-rational substantial discount.For UBS Investment income and risk analysis can be found: the Fund with proceeds Large uplink, downlink significantly increased risk of sharp gains and risk characteristics. Large gains for the fund yield equals or exceeds 20%, compared to ordinary stock funds, Ruifu Enterprising income multiples of 1.50 and above, the estimated average leverage ratio can reach 1.62. With the market down in the risks, and the Fund itself the product design special risk analysis, we focus on the fund classification of features and Ruifu Enterprising leverage brought about by the risks. The risk classification features from the two funds share of the linkage, we encountered when Ruifu Priority redeemed, the share of Ruifu Enterprising ratio change, thus affecting the lever effect. On the other hand, the lever counterproductive concern, the high valuation of the market in the state of operation, once in a de facto reversed a downward turn, the proceeds of the past used to expand the role of the same lever in turn will hurt earnings. In addition, the innovative stage launched products often can not be fully recognized by investors, the most fundamental theoretical relationship between supply and demand of less than the balance of the Fund may also be in the original intention of the designer price transactions. And this for some time, the market appeared more similar products, the scarcity premium on the difficult, so that the Fund's trading price risks.As a brand new variety of transactions, there is no pricing precedent for Ruifu fund in the market. Through a number of assumptions and estimates, we attempt to analyze a reasonable listing of the fund pricing. After the analysis of the pricing-impact factors, we tried to adopt a pricing formula to measure the level of pricing, finally got the result that opened the first day of the listing price level should be 1.68 yuan or so.On the whole, Ruifu classification stock fund is very prominent in innovation. In the characteristics of return and risk, Ruifu Priority reflects characteristics of good fixed-income products with low risk and appropriate receipt. At the same time, we focus on Ruifu Enterprising the first fund which is a lever with amplification of high-risk high-yield varieties in the market. The characteristics of these two products, exactly matching our asset management projects VAR risk control model required risk-free income and some high-risk high-yield product demand. According to the analysis, clients'asset management with investment in the actual situation, and the visit & ongoing communication to the Fund, we formed investment proposals to Ruifu classification stock fund. The main contents of the proposed are that purchase Ruifu Enterprising actively and Ruifu Priority properly, the Fund's long-term investment value cautiously optimistic. |
PDF Full Text Request