National Investment Silver LOF Compensation Starts Today! First-Time Disclosure of Detailed Ratios

This article is sourced from Caixin News, authored by Yan Jun.

The compensation process for investors has officially begun following the valuation adjustment of Guotou Silver LOF.

At midnight on February 26, the “Guotou UBS Silver Fund” mini-program will launch on Alipay. Investors can search for this mini-program on Alipay, complete identity verification online, and then proceed with related procedures.

On February 2, the valuation adjustment of Guotou Silver LOF caused its net asset value to drop by 31.5% in a single day, attracting attention. Before the Spring Festival, Guotou UBS Fund announced a compensation plan for affected investors. The plan applies to individual investors who redeemed Guotou UBS Silver (LOF) based on the net asset value as of February 2, 2026 (including redemption applications submitted after 3:00 PM on January 30, 2026, and before 3:00 PM on February 2, 2026), excluding institutional investors.

The compensation plan covers individual investors affected by the valuation adjustment (from -17% to -31.5%) with an impact amount of less than 1,000 yuan, who will receive full compensation. This is expected to enable over 90% of individual investors to receive full reimbursement. For investors with impact amounts exceeding 1,000 yuan, the plan also specifies the compensation ratio, with a cap of 5% for the total payout affecting more than 10,000 investors.

Sources indicate that the funds for this special compensation plan come entirely from the company’s own assets, which are strictly separated from the fund’s assets.

Attention 1: Details of the Compensation Plan: Who Can Apply? How Much Can They Receive?

On February 2, due to extreme market conditions caused by sharp fluctuations in international silver prices, Guotou UBS Silver Futures Securities Investment Fund (LOF) faced a significant valuation adjustment. To accurately reflect the fund’s asset value, the fund manager adjusted the valuation from -17% to -31.5% in accordance with regulations and the fund contract. Although compliant, this adjustment caused some investors who redeemed based on net asset value on that day to experience psychological discomfort.

In response, Guotou UBS Fund established a dedicated working group, operating within legal and procedural boundaries, to develop a special compensation plan based on multiple data analyses and scheme designs. On February 15, the plan was launched with the principles of “layered classification, convenience, and reliability.” The plan was officially made available via the Alipay mini-program on February 26, allowing investors to verify their identity online and apply for compensation.

The plan applies to individual investors who redeemed Guotou UBS Silver Futures Securities Investment Fund (LOF) based on the net asset value as of February 2, 2026 (including redemption applications submitted after 3:00 PM on January 30, 2026, and before 3:00 PM on February 2, 2026), excluding institutional investors.

Investors affected by the valuation adjustment with impact amounts under 1,000 yuan will receive full compensation. For impact amounts of 1,000 yuan or more, compensation will be calculated based on a specific proportion of the excess over 1,000 yuan, following a tiered structure:

• For impact amounts between 1,000 and 2,000 yuan, the compensation ratio is 35%;
• Between 2,000 and 3,000 yuan, 25%;
• Between 3,000 and 5,000 yuan, 15%;
• Between 5,000 and 10,000 yuan, 10%;
• For amounts exceeding 10,000 yuan, a cap of 5%.

Guotou UBS estimates that over 90% of affected individual investors will receive full compensation. The remaining investors will receive compensation proportionally, as much as possible.

Attention 2: How Is the Tiered Compensation Calculated?

To facilitate investor claims, Guotou UBS has partnered with Alipay to launch the “Guotou UBS Silver Fund” mini-program. Investors can complete their application in three steps:

1. Open Alipay, search for the mini-program, and complete real-name authentication. The system will automatically verify whether the investor qualifies for compensation.
2. After verification, the page will display the estimated affected amount and the eligible compensation amount.
3. Investors review the information, confirm, and submit their application. The system will generate a compensation agreement, which investors can sign online. The compensation will be transferred to the original redemption account within the specified period.

Investors can receive their compensation based on a tiered “excess cumulative” mechanism. The calculation involves two steps: first, restoring the affected amount; second, calculating the final compensation sum.

The affected amount equals the redemption confirmation amount divided by (1 - 31.5%) multiplied by 14.5%, where 14.5% is the difference between the original -17% and adjusted -31.5%. This formula essentially “restores” the investor’s position based on the redemption amount and then applies the valuation adjustment difference to determine the actual affected amount.

For example, if an investor’s redemption amount is 4,737.81 yuan, the affected amount is calculated as:

1002.89 yuan = 4737.81 ÷ (1 - 31.5%) × 14.5%

Then, to determine the compensation, since 1002.89 yuan falls into the 1,000–2,000 yuan tier, the formula is:

1000 + (1002.89 - 1000) × 35% = 1001.01 yuan

Thus, the final compensation is approximately 1001.01 yuan.

On the evening of February 25, many investors expressed concern about their compensation amounts on social media. Some commented that the compensation was low. Using the above formula, investors can calculate and understand the composition of their compensation clearly.

Some investors shared screenshots of their compensation amounts on social media.

Attention 3: Where Does the Compensation Fund Come From?

Sources indicate that the funds for this special plan come from the company’s own assets. The company’s assets are strictly separated from the fund’s assets.

Attention 4: Why Are Investors Trading on the Exchange Not Covered?

Guotou UBS Silver LOF combines subscription/redemption mechanisms with on-exchange trading. The two have fundamentally different pricing logic.

The valuation adjustment directly affects the fund’s net asset value, impacting only subscription and redemption transactions based on NAV. However, on-exchange trading occurs in the secondary market, where prices are determined by market supply and demand according to Shenzhen Stock Exchange rules, and are not directly tied to the fund’s NAV.

Therefore, the gains or losses of on-exchange investors depend mainly on market price fluctuations, and their trading activities are not directly affected by the valuation adjustment. As a result, they are not included in this compensation scheme.

Attention 5: Why Are Investors Who Did Not Redeem on February 2 Not Covered?

Guotou UBS Fund states that the valuation adjustment only affects investors who redeemed based on the February 2 NAV. Other investors who did not redeem on that day were not impacted by the valuation change. For those holding shares as of February 2 but not redeeming, the overall two-day decline was similar regardless of valuation adjustments. The adjustment aims to protect those who did not redeem on February 2.

From January 30, 3:00 PM Beijing time to February 2, 3:00 PM, COMEX silver fell 31.5%, while domestic silver futures, limited by the Shanghai Futures Exchange’s daily price limits, declined approximately 31.84% over the same period, closely matching international silver futures’ price movements. For investors who did not redeem, the valuation adjustment on February 2 reflects the true value of the underlying assets. Long-term, domestic and international silver futures tend to move in tandem.

Guotou UBS emphasizes that the valuation adjustment is legal, compliant, and procedurally proper. The plan is a proactive measure to improve investor experience. While some investors may feel a psychological gap between expectations and actual results, the company states:

“The settlement plan aims to address investor concerns through rational communication, helping us serve investors better. It does not involve investors who did not redeem on that day. The valuation adjustment is to protect the interests of those who have not redeemed.”