Everbright Wealth Management responds to a product net value decline: it is a net value fluctuation caused by large redemptions from a small-scale product

People’s Finance News, March 30—According to media reports, Guangda Wealth Management’s “Yin Yang Jin Zeng Li Stable and Steady, Daily Purchase Customized (90-Day Minimum Holding) 2A” product has recently seen a sharp pullback in its net value. In response, Guangda Wealth Management told a Securities Times reporter that the product is a customized wealth management product for a certain single distribution channel. At inception, the product had a small scale, low allotments, and a limited number of total holdings holders. Guangda Wealth Management said that, due to customer redemptions of the small-scale customized product, the resulting book-net-value disruption was caused by the calculation rules when confirming the redeemed shares. At the same time, because the product experienced redemptions at a relatively large scale within a short period, its overall scale became lower, limiting the product’s investable assets (this product mainly invests in risk-free demand deposits), resulting in a lower total yield level. However, it still needs to accrue the relevant expenses normally, leading to a period of net value decline. “Overall, this is a common industry phenomenon where small-scale asset management products compute net value when there is a change in the scale of redemptions,” Guangda Wealth Management told the reporter.