Greenwoods Asset Management is delighted to announce the effectiveness of two new classes under the Fund on March 2, 2009. Of the two new class, Class D is for the subscription by new investors and Class E is for switching investors, with high watermark carried forward.
Greenwoods launched the new product to capitalize some undervalued investment opportunities in the market and further leverage our corporate research capability, Greenwoods plans to launch a new class under the Golden China Plus Fund for new and existing investors of the Fund, to invest into undervalued Chinese securities with strong growth potential and expected to benefit from the stimulus plans, structural reforms, and other big themes, including Chinese stocks, convertible bonds, high yield bonds, and other securities. The new class will be subject to a lock-up period of two years, and a hurdle rate of return of 15% during the lock-up period.
Management fee will be 1% per annum, which is half of the 2% fee that investors of the fund currently pay, and the performance fee will be 20%, to be charged on all the performance if achieving or exceeding the hurdle rate at the expiry of the lock-up period.