Name
Bank of China fund of funds wealth management plan (hereinafter referred to as "BOCFOF")
Introduction
The BOCFOF is a wealth management product with non-principal-guaranteed floating returns. This product invests in various security investment funds of domestic public offering mainly through a fund trust. A small amount of funds are directly or indirectly invested in fixed-income or stock vehicles. A "core-satellite" investment strategy is employed, and through selection of security investment funds and diversification, the portfolio risk is controlled, in pursuit of a long-term and stable appreciation of principal and returns over the benchmark.
Investment currency: RMB
Investment horizon: no fixed term
Our Advantages
1. Investors take all the investment returns net of fixed Ad Valorem fees. Performance fees are waived.
2. Investors can gauge initiatives to invest. The product has no fixed maturity, and is subscribed and redeemable (after the lock-in period) on a monthly basis; hence inevitable losses amid severe market decline at maturity would be avoided.
3. Economies of scale and cost reduction. This product is a collective investment scheme, with pooled funds invested on a bloc basis. Transaction cost can be effectively reduced to a preferential level.
4. Portfolio investment and risk diversification. The portfolio is combined by selection of various investment funds, in pursuit of active returns and minimized non-system risk with a "core-satellite" strategy.
5. Two-tier management mechanism. The product is a professionally managed fund, aiming at higher return by integration of the advantages of various funds.
Target Customers
High-net-asset-value individual customers and institutional customers, with relevant investment experience and strong risk tolerance.
Process
Product subscription: according to the term sheets published by Bank of China, upon full understanding of product benefits and risks, investors can subscribe for each product during the period in any designated branch of Bank of China with valid personal ID card.
Product purchase and redemption: this product can be purchased and redeemed within designated time window. The purchase or redemption application is accepted before closing of trading time of the day (Day T) designated by sales institutions, and to be confirmed by the transfer agent on Day T +1. From Day T+2 (inclusive), investors can check confirmation in the manners provided by sales institutions after submitting an effective application return receipt on Day T.
Dividends payment: The dividends payout ratio and whether or not distribute the dividends are at the discretion of product manager according to the product operation. Dividends are paid only in cash. Each unit of the BOCFOF is entitled to equal distribution right. Dividends beneficiaries are registered shareholders upon the record date of registration.
Required Documents
Only valid personal identity documents are accepted.
Risk Disclosure
The BOCFOF is not a risk-free product. Funds are mainly invested indirectly in various security investment funds, stocks, bonds of public offering in the secondary market via the trust. Please be aware of possible risks of no income or even loss of principal for this product in case of shrinkage of net asset value, trade suspension, illiquidity, and other unfavorable conditions occurring to the financial instruments aforementioned.
In accordance with agreements in the term sheets, Bank of China Limited will manage the funds of investors with diligence. All related investment risks of the BOCFOF are borne by investors, and related investment returns thereof belong to investors. Bank of China Limited does not guarantee the principal and return. Investors should carefully read the product manual before purchase and subscription of this product.
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