The Research On Pricing Strategy Of Perpetual Tiered Fund Based On SWS Shenzhen Component Index Tiered Fund

The tiered fund originates in mature markets. Recently as the financialinnovation of our country, this kind of product is introduced to local capitalmarket. This product in our market develops through several stages and nowperpetual tiered fund is in the mainstream. As the short history of this productits pricing strategy is controversial.This paper provides an analysis of pricing strategy based on SWSShenzhen Component Index. And the contract of the fund, its operation rulesand the conception that the value is determined by the cash flow in future willbe taken in consideration.For Class A share: Value=bond value+converting valueFor Class B share: Value=option value+converting valueAs this kind products do not operate in the market independently, theymay be affected by many factors. This paper will analyze them separately.