Guotou Ruiyin Silver LOF Compensation Plan Implemented, Gradient Compensation Reflects the Warmth of Inclusive Finance

Recently, a certain fund company’s valuation adjustment for its Silver LOF product has attracted market attention due to investor compensation plans. Just before the Spring Festival, the fund company urgently established a special working group and announced a preliminary settlement plan on February 15, just before the holiday. After the holiday, they quickly refined the compensation details, demonstrating an efficient approach to resolving issues.

According to the latest announcement, the compensation plan limits the scope to individual investors who confirmed net asset value redemption on February 2, 2026. Specifically, it includes those who submitted redemption requests between 3:00 PM on January 30 and 3:00 PM on February 2. The plan adopts a tiered compensation mechanism: investors affected by valuation adjustments with amounts below 1,000 yuan will receive full compensation; amounts above 1,000 yuan will be compensated at different rates within specified ranges: 35% for 1,000–2,000 yuan, 25% for 2,000–3,000 yuan, 15% for 3,000–5,000 yuan, 10% for 5,000–10,000 yuan, and capped at 5% for amounts exceeding 10,000 yuan. The fund company emphasizes that all compensation funds will be drawn from the company’s own assets.

Shareholder notices indicate that this compensation plan is expected to impact no more than 5% of the 2023 net profit, approximately 134.7 million yuan. Data shows that small investors with less than 1,000 yuan account for about 90%, reflecting a principle of inclusive finance. The differentiated compensation also balances the interests of various investor groups. To improve convenience, the fund company has developed an online registration mini-program, and some investors have already received their compensation, with processing efficiency recognized by the market.

In response to market questions, the fund company explained that the holdings of investors who did not redeem have already reflected the true value of the underlying assets. Reviewing the cause of the incident, COMEX silver prices plummeted by 31.5% from January 30 to February 2, while domestic Shanghai silver futures fell a total of 31.84% over two days due to trading limit restrictions. The valuation adjustment aimed to narrow the discrepancy between the product’s net asset value and its actual value. Because LOF products operate with both on-exchange and off-exchange mechanisms, the on-exchange trading prices are determined by secondary market supply and demand, so on-exchange investors are not included in this compensation scope.

Industry analysts point out that this incident reveals room for improvement in the fund company’s information disclosure. As a specialized fund with futures as its underlying asset, its high volatility requires managers to strengthen risk warning obligations. Regarding investor education, professionals advise ordinary investors to avoid blindly following trends, fully understand the characteristics of the underlying assets, and assess their own risk tolerance. Special caution should be taken regarding premiums between on- and off-exchange markets, which can introduce additional risks.

It is noteworthy that the fund company’s proactive efforts to protect investor rights within a compliant framework have been recognized by the market. Using its own funds for compensation rather than passing costs onto investors demonstrates responsibility and provides a reference model for the industry in handling similar incidents. This practice of balancing commercial interests with investor protection may promote higher standards in product design and risk disclosure in the industry.