National Investment Silver LOF Compensation Officially Starts, Settlement Money May Exceed One Year Profit

Reporter | Pang Huawei, Liu Xueying

Editor | Zeng Jingjiao

Starting today (February 26), the investor compensation process has officially begun due to the valuation adjustment of Guotou Silver LOF. Investors can search for the “Guotou Ruixin Silver Fund” mini-program on Alipay, complete identity verification online, and handle related matters.

Regarding the common concern among investors about the source of compensation funds, a person from Guotou Ruixin Fund Management Co., Ltd. told 21st Century Business Herald that the compensation funds come from the company’s assets.

On February 2, the valuation adjustment of Guotou Silver LOF caused a single-day net value drop of 31.5%, attracting attention. Before the Spring Festival, Guotou Ruixin Fund announced a compensation plan for affected investors:

• Investors with an impact amount below 1,000 yuan will receive full compensation;
• For impact amounts of 1,000 yuan (inclusive) or more, compensation will be calculated at a specific ratio based on the excess over 1,000 yuan. For impact amounts between 1,000 yuan (inclusive) and 2,000 yuan, the settlement ratio is 35%;
• For impact amounts between 2,000 yuan (inclusive) and 3,000 yuan, the ratio is 25%;
• For impact amounts between 3,000 yuan (inclusive) and 5,000 yuan, the ratio is 15%;
• For impact amounts between 5,000 yuan (inclusive) and 10,000 yuan, the ratio is 10%;
• For amounts exceeding 10,000 yuan, a cap of 5% applies.

The scope of the compensation plan applies to individual investors who redeemed Guotou Ruixin Silver LOF at the net value confirmed on February 2, 2026 (including those who submitted redemption applications after 3:00 pm on January 30, 2026, and before 3:00 pm on February 2, 2026). It does not include institutional investors.

Silver LOF Premium Surpasses 40% Again

During the Spring Festival holiday, international silver prices surged significantly, boosting the market. The Guotou Silver LOF (161226), which was caught in the “valuation adjustment” storm, rebounded strongly on its first trading day after the holiday. On February 24, the fund resumed trading with a high opening and closed at the daily limit. On February 25, it continued to rise sharply. As of the close on February 24, the premium rate of Guotou Silver LOF exceeded 40% again, and market enthusiasm remained high.

On the morning of February 26, spot silver prices sharply declined. By 7:56 am, they fell below $88, down more than 1.4%. Spot gold hovered around $5,165, with a slight increase of 0.05%.

Parent Company Discusses Compensation Plan Impact

The valuation adjustment storm of Guotou Ruixin Fund originated from an epic plunge in the international silver market. From January 30 to February 2, COMEX silver futures fell about 31%. Due to the ±17% daily limit restrictions on domestic Shanghai Futures Exchange silver futures, price fluctuations were significantly constrained.

On the evening of February 2, Guotou Ruixin announced that it would adjust valuations based on major international silver futures prices. As a result, the net value per unit of Guotou Silver LOF plummeted from 3.2838 yuan to 2.2494 yuan on that day, a 31.5% drop, setting a record for the largest single-day net value decline in public fund products. Since the fund company announced the valuation adjustment after trading hours, investors who submitted redemption requests during the day expected a loss of about 17%, but the actual loss was 31.5%. This valuation adjustment sparked widespread controversy among investors.

On February 15, Guotou Ruixin Fund Management Co., Ltd. issued an announcement on the related plan, proposing a tiered compensation scheme for individual investors who redeemed at the net value confirmed on February 2, 2026.

This rare operation, dubbed by industry insiders as “crossing the exemption zone,” was finally confirmed by the parent company on February 24. Guotou Ruixin Fund’s parent company, Guotou Investment Holdings Co., Ltd. (600061), issued an announcement on February 24 explaining the potential impact of this compensation plan on the company’s performance.

Guotou Investment stated that, based on preliminary estimates, this plan is expected to have a certain negative impact on the company’s net profit attributable to shareholders in 2026, with the impact amount being less than 5% of the audited net profit attributable to shareholders in 2024. The company emphasized that this matter will not have a substantial impact on overall business development and will continue to supervise Guotou Ruixin Fund to operate within compliance, enhancing risk management.

Industry experts pointed out that according to Guotou Investment’s 2024 annual report, its net profit attributable to shareholders was 2.694 billion yuan. Estimating the maximum impact at “less than 5%”, the upper limit of this compensation event’s impact on the parent company’s net profit is approximately 134.7 million yuan.

Since Guotou Investment indirectly holds 61.29% of Guotou Taikang Trust Co., Ltd., which owns 51% of Guotou Ruixin Fund, Guotou Investment’s shareholding in the fund is about 31.26%. Using a simplified equity penetration estimate, the maximum total burden for Guotou Ruixin Fund from this compensation is no more than 431 million yuan. In comparison, the fund’s 2024 net profit was 376 million yuan.

“These settlement funds are expected to exert significant pressure on the company’s profit for the year, possibly approaching Guotou Ruixin’s annual net profit (about 376 million yuan). However, such expenses are usually not amortized in a single year; otherwise, they would directly impact annual bonuses and talent incentives. Based on industry precedents, such compensation is often spread over three to five years to smooth short-term impacts on operating profits. Compared to fluctuations in net profit, the risk of talent loss caused by this is a fundamental test of the company’s long-term competitiveness,” said a public fund industry analyst. “From the current plan, it appears to be a cautious result after comprehensive consideration of legal, commercial, and reputational factors, balancing various interests. It is unlikely to cause substantial impact on the fund company’s capital adequacy ratio or subsequent stable operations.”

As the compensation plan is set to officially commence on February 26, coupled with the rebound in silver prices, the market awaits whether Guotou Silver LOF can recover from its previous “roller coaster” ride.