Tianxiang Investment Advisors stated that the valuation adjustment made by the SDIC Essence Silver LOF has a certain degree of rationality. The firm emphasized that sufficient and transparent emergency handling mechanisms should be established for such products.

On February 7, the SDIC Essence Silver LOF experienced its fifth consecutive daily limit-down. A chain reaction triggered by a post-market valuation adjustment announcement has drawn official market attention and investor dissatisfaction.

From a professional perspective, Tianxiang Investment Advisors analysts explained the logic behind the valuation adjustment. The researchers pointed out that the adjustment made on February 2 was actually due to a sharp decline in international silver assets. While overseas silver prices fell by over 30%, domestic price limits meant that the silver futures contract hit the down limit but did not fully reflect the international drop, with further declines expected. If investors were allowed to redeem at that day's net asset value, losses not yet fully accounted for would be borne by remaining investors, creating unfairness and potentially larger future losses. Therefore, the valuation adjustment was considered reasonable. The decision not to announce in advance may have been due to market uncertainties.

From a compliance standpoint, according to guidelines such as the "Guiding Opinions on the Valuation Business of Securities Investment Funds," managers can reasonably adjust valuations if there is clear evidence that asset prices do not reflect fair value. However, even if the adjustment was compliant and reasonable, the resulting investor dissatisfaction highlights areas for discussion.

The research team stressed that such incidents reveal insufficient consideration by fund managers for extreme scenarios in product design and daily operations. For products priced internationally but traded domestically, fully transparent emergency plans should be established. These could include changing valuation methods during extreme price volatility or illiquidity, or imposing restrictions on subscriptions and redemptions. Such clauses should be fully disclosed before risks materialize, allowing investors to form expectations.

Additionally, Tianxiang Investment Advisors recommended that fund managers enhance information disclosure and risk warnings. Examples include issuing intraday alerts or having investors sign special risk disclosure forms to prevent investors from being caught off guard by sudden valuation changes, which severely impacts their experience.

In response, SDIC Essence Fund Management Company announced on February 6 that it has established a specialized working group to research and develop relevant plans. The company stated it attaches great importance to investor concerns regarding the valuation adjustment and related announcements for its Silver Futures Securities Investment Fund (LOF). SDIC Essence expressed support for resolving investor claims through mediation, arbitration, or other legal channels, affirming its ability to protect investors' legitimate rights and interests.

On February 7, some Silver LOF holders received SMS alerts from SDIC Essence addressing investor concerns and safeguarding rights, with details available via the provided link or hotline.

The event serves as a critical lesson for the fund industry—highlighting that as financial markets globalize, risk management mechanisms for cross-border investment products must become more refined and transparent. Balancing international market volatility with domestic trading mechanisms, maintaining fairness among investor groups, and improving emergency plans for extreme scenarios have become essential industry challenges.

For investors, the incident underscores the need to fully understand the unique risks of cross-border products, including trading hour differences, varying market mechanisms, and currency fluctuations, which can lead to complex impacts.

Note: Fund evaluation results should not be considered as investment advice or predictions of future performance.