Core Viewpoint - The net asset value (NAV) of the Guotai Junan UBS Silver LOF experienced a significant decline of 31.5% in a single day, marking a historical record for public funds in terms of daily drop [1] Group 1: Fund Performance - The fund's NAV was adjusted due to extreme market conditions, where international silver futures prices fluctuated beyond the limits set by the Shanghai Futures Exchange [1] - The adjustment was necessary to ensure that the fund's NAV accurately reflects the true fair value of its underlying assets [1] - For instance, if the international silver price drops by 30% but the Shanghai Futures Exchange only allows a 17% drop, continuing to value the fund based on the 17% decline would lead to an overestimation of the actual asset value [1] Group 2: Future Valuation Methodology - The company plans to consider various influencing factors and collaborate with the fund custodian to restore the valuation method based on settlement prices once the trading characteristics of the contracts reflect an active market [1]

Core Viewpoint - The adjustment of the valuation method for the Guotou UBS Silver LOF fund is aimed at ensuring that the net asset value accurately reflects the underlying asset value amid significant fluctuations in international silver prices [1][2]. Group 1: Fund Valuation Adjustment - Guotou UBS Fund announced a change in the valuation method for the Guotou Silver LOF fund, with the latest A share net value at 2.2494 yuan and C share net value at 2.2290 yuan, reflecting a daily decline of 31.5% [1]. - The fund primarily invests in silver futures contracts traded on the Shanghai Futures Exchange, and the adjustment was made due to significant discrepancies between international silver prices and those on the Shanghai exchange [1][2]. - The new valuation method will reference the price fluctuations of international silver futures as of 3 PM Beijing time, effective from February 2 [1][2]. Group 2: Rationale Behind the Adjustment - The adjustment is based on the fund contract clause allowing for valuation changes if the current method does not reflect fair value, as determined through discussions with the fund custodian [2]. - Recent extreme market conditions have led to a significant divergence between international silver prices, which fell over 25%, and the Shanghai silver futures, which were limited to a 17% decline, prompting the need for a valuation adjustment [2]. - The adjustment aims to prevent the fund's net value from overestimating the actual asset value, addressing the issue of valuation lag [2]. Group 3: Future Valuation Method and Risk Alerts - The fund will revert to the settlement price valuation method once the relevant contracts reflect active market trading characteristics, without further announcements [3]. - The fund issued a premium risk alert, indicating a suspension of trading from February 3 until 10:30 AM on the same day, with over 20 risk alerts issued this year [3].