Covers 92.4% of investors! Why does the Guotou RuYin compensation plan receive industry praise?

Fundraising | Zhongfang.com

Audit | Li Xiaoyan

Before and after the 2026 Spring Festival, the Guotou Ruiyin Silver Futures LOF attracted widespread market attention due to valuation adjustments caused by extreme market conditions, becoming a landmark event in the development of the public fund industry. Faced with sudden situations arising from sharp fluctuations in the international precious metals market and differences in trading rules between domestic and foreign markets, Guotou Ruiyin did not choose to avoid controversy. Instead, it took proactive, scientific measures by launching a compensation plan that not only maintained compliance but also reflected a customer-centric service approach. This provided a practical example for the industry to respond to extreme market risks and improve investor protection mechanisms.

The origin of this incident was a historic and severe adjustment in the international silver market on January 30, when silver futures on the New York Mercantile Exchange plummeted sharply during trading, while the domestic futures market could not fully reflect the price fluctuations due to the limit-up and limit-down system. As the only public fund product tracking silver futures in China, Guotou Ruiyin Silver LOF faced valuation distortions caused by the price gap between domestic and international markets. To ensure that the fund’s net asset value (NAV) accurately reflected asset values and to protect the long-term fairness of all holders, the fund manager adjusted the valuation method retrospectively in accordance with regulatory guidance and the fund contract. This operation was fundamentally a compliant measure based on fair value principles to prevent NAV inflation and unfair redemptions, avoiding arbitrage phenomena where early redeeming investors benefit at the expense of later ones, thus safeguarding the fairness and stability of the fund’s operation.

On February 15, Guotou Ruiyin officially announced an investor compensation plan, and on February 26, the online compensation channel was launched on time to efficiently resolve market concerns. The plan was designed with a core approach of small-amount full coverage, tiered compensation for larger amounts, and a focus on individual investors. For natural persons with valuation adjustment impacts below 1,000 yuan, full compensation was provided, covering 92.4% of small and medium investors who redeemed on that day, strengthening protection for small investors with real funds. For investors affected by more than 1,000 yuan, compensation was provided on a tiered basis, with the excess amount compensated proportionally, demonstrating responsibility while considering the fund company’s sustainable operation and industry rules. All compensation funds came from the management company’s own resources, not using fund assets or diluting other investors’ interests, reflecting a responsible institutional attitude.

From an industry perspective, this is the first case in the history of public funds where, within a compliant framework, investor compensation was proactively implemented for valuation disputes. It broke through the traditional inertia of “compliance equals exemption,” elevating investor protection from passive compliance to active responsibility. In the face of extreme black swan events, the fund company did not fully transfer risks to investors but took the initiative to assume social responsibility, resolving conflicts through market-based approaches, stabilizing market sentiment, and restoring confidence. Guotou Ruiyin’s announcement indicated that this compensation had a limited impact on the company’s annual net profit, balancing investor interests with the company’s steady operation within financial capacity, providing a low-cost, efficient solution for similar risks in the industry.

The behind-the-scenes design of the plan reflects precise protection and rational balance. Small and medium individual investors are relatively disadvantaged in information access, risk recognition, and capital capacity, making them the key focus of investor protection. The plan prioritized safeguarding this group’s interests, aligning with regulatory guidance and the financial industry’s mission to serve the people. For larger investors and institutional investors, the plan demonstrated care while adhering to the fundamental market principle of “buyer beware,” guiding investors to rationally understand product risks and avoid irrational expectations of rigid repayment. This differentiated arrangement is not discrimination but aims to maximize protective effects with limited resources, balancing fairness, efficiency, responsibility, and contractual integrity.

Of course, as an unprecedented industry exploration, there is room for improvement in the implementation details and communication of this compensation plan. Some large investors questioned the compensation ratio, and market discussions on the timing of valuation adjustment disclosures provided valuable lessons for industry risk response mechanisms. Under extreme cross-market conditions, product design, valuation management, information disclosure, and investor education need further upgrades. This event leaves the industry with positive wealth.

In the short term, valuation adjustments and the compensation plan serve as a market stress test; in the long term, they represent an evolution and upgrade of the public fund industry’s investor protection system. Guotou Ruiyin demonstrated responsibility, quick response, and market-based solutions during the incident, redefining the responsibilities of fund managers. Moving from passive rule compliance to proactive trust protection not only repaired the reputation of individual products but also promoted the industry toward a more mature and warmer development.

As the compensation work is being implemented in an orderly manner, this silver LOF incident is transforming from a controversy into an opportunity for industry progress. For the fund industry, it will lead to more mature responses to extreme risks across markets and time zones; for investors, clearer understanding of product risks and contractual commitments; and for the market, a further solidification of trust. In the process of high-quality development of wealth management, Guotou Ruiyin’s practice proves that adhering to compliance, prioritizing investor interests, and taking proactive responsibility are the core strengths for institutions to navigate cycles and achieve steady long-term growth.