Fund liquidation refers to the realization of all fund assets and the distribution of income to holders. The liquidation time is stipulated in the fund contract when the fund is established. The holders' meeting may modify the fund contract and decide the liquidation time of the fund.
Capital settlement practice
It is generally stipulated in foreign countries that capital settlement needs permission or filing with the competent authorities. For example, in Britain, after the liquidation of open-end funds, the issuance, sale, redemption and cancellation of shares will be stopped, and the registration of share transfer will no longer be handled. Without the approval of the directors, the registration of shareholder change may not be carried out. In addition to liquidation interests, fund business will no longer be carried out. The fund manager shall announce the notice of starting liquidation and notify the shareholders in writing that liquidation has started.
From the practice of Merrill Lynch Investment Company in the United States, Merrill Lynch equity funds and convertible securities series funds can be suspended or merged in whole or in part under certain circumstances. If the net asset value of all overseas shares of an investment company is less than US$ 25 million for more than 30 consecutive days, or the net asset value of overseas shares of a fund is less than US$ 6.5438+0.5 million, or the board of directors thinks that the company or related funds are affected by changes in the economic and political situation, the company can send a written notice to all shareholders or shareholders of a certain stock 654.38+0 months in advance when the board of directors thinks fit, so as to make the next pricing after the notice period ends. The redemption or merger of shares is based on the net asset value on the above pricing date.
If the merger or suspension of funds is due to changes in the economic and political situation, it must be approved by the shareholders of the relevant funds in advance. The approval was made at a similar shareholders' meeting held in an appropriate manner. During the Asian financial crisis, Hong Kong once had to liquidate funds because its assets were too small. Due to the bearish market outlook and redemption of fund shares, many fund management companies in Hong Kong closed some funds. The liquidation of these funds requires the resolution of the holders' meeting. However, because most retail investors have redeemed their fund shares when the stock market fell, the remaining institutional holders mostly take the form of safe custody accounts in the name of managers, so it is easy to reach a resolution on fund liquidation. At this time, the dissolution of the fund has little effect.
In China's fund liquidation, we will refer to foreign practices and make specific provisions on possible liquidation. For example, according to the principle of marketization, the market determines whether the fund exists reasonably and provides possible paths for it. The details can be stipulated in the fund contract, or decided by the holders' meeting, or approved by the liquidation authority. In order to protect the interests of investors, strict and specific provisions should be made on the procedures and supervision of liquidation. If it should be agreed that the fund liquidation shall be approved by the CSRC, the circumstances stipulated in the contract shall be filed with the CSRC. After the liquidation begins, the time and frequency of publication in newspapers and periodicals shall be specified, and the transaction shall be stopped during this period, and the holder shall be paid with the net asset value at the closing date of the announcement.
Capital settlement's conditions
Article 44 of the Measures for the Operation and Management of Securities Investment Funds promulgated in 2004 stipulates that if the number of fund share holders is less than 200 or the net asset value of the fund is less than 50 million yuan after the fund contract of an open-end fund comes into effect, the fund manager shall report to the China Securities Regulatory Commission in time; If the above situation occurs for 20 consecutive working days, the fund manager shall explain the reasons and submit the solution to the China Securities Regulatory Commission. As can be seen from the regulations, the conditions for fund liquidation are harsh. First of all, as a wealth management product, funds have been widely recognized and accepted in fund liquidation. At present, the base of domestic funds is very large, and it is basically impossible for a fund to have fewer than 65,438+000 fund share holders for 60 consecutive days. Secondly, although it is simply calculated by net value, it is not excluded that the net assets of individual funds are close to or below 50 million yuan due to the impact of splitting or dividends. Even if the size of the fund once fell below 50 million yuan, as long as it did not appear for 60 consecutive days, it did not meet the conditions for liquidation.