On February 24, the SDIC Silver LOF reopened with a significant gap up and briefly hit the daily upside limit during the session. As of 1:10 p.m., the fund was up 8.47% at 3.060 yuan, with a premium rate of 38.40%.
To address high premium risks, the SDIC Silver LOF was temporarily suspended from market open until 10:30 a.m. today, after which normal trading resumed. This is one of the targeted risk control measures recently implemented to protect investor interests.
On February 15, SDIC UBS Fund Management Co., Ltd. officially announced a compensation plan for investors who suffered losses in the SDIC Silver LOF, proposing a tiered compensation scheme.
Specifically, compensation targets individual investors (excluding institutional investors) who submitted redemption applications after 3:00 p.m. on January 30 and before 3:00 p.m. on February 2, with redemptions confirmed at the fund's net asset value on February 2. All compensation funds will come from the fund company's own risk reserve, not fund assets, ensuring the interests of other holders are unaffected.
For individual investors where the valuation adjustment impact (the portion adjusted from -17% to -31.5%) was below 1,000 yuan, the settlement amount will be the full actual impact amount. This group reportedly accounts for over 90% of the investors who redeemed that day. For those with an impact amount exceeding 1,000 yuan (inclusive), the total settlement amount will be 1,000 yuan plus a certain percentage of the amount above 1,000 yuan.
Separately, according to a announcement on the Shanghai Stock Exchange website on February 24, SDIC Capital Co., Ltd., the parent company of SDIC UBS Fund, issued a statement regarding the potential impact of this compensation plan on the company's performance.
The announcement stated that preliminary estimates indicate the plan is expected to have a certain negative impact on the company's 2026 net profit attributable to the parent company. The impact amount is less than 5% of the company's audited 2024 net profit attributable to the parent company and will not substantially affect the company's overall business development. SDIC Capital also stated it would urge SDIC UBS to strictly adhere to compliance and enhance its risk control capabilities.
Previously, on the evening of February 2, after updating its NAV, the SDIC Silver LOF plunged from the previous trading day's 3.2838 yuan to 2.2494 yuan, a single-day drop of 31.5%, setting a record for the largest single-day decline in a public fund and sparking market controversy.
Prior to this, while domestic SHFE silver futures were limit-down due to the ±17% daily price limit, international silver markets (like COMEX, spot London silver) fell over 25% on January 30 (Friday) as they have no price limits. The fund was suspended from January 30 due to abnormal volatility and resumed trading on February 2. Consequently, on Monday, February 2, SDIC UBS announced it would reference the price changes in major international silver futures markets, implying a drop exceeding the 17% limit-down, which caused an uproar.
Many investors expressed that SDIC UBS announced the valuation adjustment after the market closed on the same day, with immediate effect, leading to "significant losses." Subsequently, investors filed complaints against SDIC UBS Fund through platforms like the CSRC website, attracting widespread attention.
On February 6, the SDIC Silver LOF opened limit-down, marking its fifth consecutive trading day of hitting the downside limit. By the close, sell orders for the fund neared 2.3 billion yuan, with a turnover exceeding 200 million yuan, and the premium rate remained high at 28.73%. The previous four trading days showed similar patterns, with daily sell orders consistently above 2.7 billion yuan.
On the same day, addressing investor concerns, SDIC UBS Fund announced it had established a working group to urgently develop a related work plan, supporting investors in resolving their claims conveniently through channels such as settlement, mediation, or arbitration, with details to be announced separately.
According to a First Financial report, as of February 6, collective complaints regarding the "SDIC Silver LOF's unauthorized retrospective valuation adjustment causing losses" on the Consumer Protection platform alone had accumulated over 17,600 entries, with participation from more than 17,000 people.
SDIC UBS Fund Management Co., Ltd. was established as a joint venture on June 8, 2005, and was the first joint venture fund company in China with foreign ownership reaching 49%. The company's shareholders are SDIC Trust Co., Ltd. (a controlled subsidiary of State Development & Investment Corp., Ltd.) and UBS AG, holding 51% and 49% stakes, respectively.
The SDIC Silver Futures LOF is the only LOF in China primarily investing in silver futures, mainly targeting SHFE silver futures contracts. According to its Q4 2025 fund report, as of the end of 2025, the fund held multiple contracts including Hu Silver 2608, Hu Silver 2606, Hu Silver 2604, Hu Silver 2602, and Hu Silver 2610.
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