When it comes to “trust products,” an average investor might think of trusts of real estate and other types of industry trust. However, although both belong to trusts of money, securities investment trust (or “securities trust”) plans are better suited for common individual investors than real estate trust products. Superficially, the main difference between securities trust and industry trust lies in the target of investment. The former invests in government bonds, shares of public or private companies in mainland China, corporate bonds, open-ended/close-ended funds, overseas securities, and other securities approved by competent authorities, whereas the latter invests in industrial projects in the real economy. Pragmatically, the former enjoys far better liquidity and bears far less amount of risk than the latter if we look at the current market situation. As the stock market soars, securities trust has recently become a focus of the market again, seeing a great increase in terms of product types and capital scale. Individual investors should pay close attention to this investment powerful tool.

Taking Shanxi Trust/Everbest Trends No.1 as an example：a beneficiary can opt for cash dividend (direct transfer into the beneficiary account) or conversion to trust units (revolving investment).      It’s calculated as follows：

Total dividend = D * N, where D is the amount of dividend per unit, and N refers to the number of trust units as of the day prior to dividend payment, to which the beneficiary have beneficiary rights.

Number of trust units received by a beneficiary in the form of dividend payout = M / ( W − D ), where M is the amount of dividend payment, and W is the net worth per unit on the closest opening day before the dividend payment day, and D is the amount of dividend per trust unit.

Taking Shanxi Trust/Everbest Trends No.1 as an example:

For partial or full redemption of their trust units, a beneficiary should submit a request to Everbest or its agent institution. The redemption procedure and necessary documents are as follows: (1) single copy of a Redemption Request duly filled and signed by the beneficiary; (2) identity document of the beneficiary. In the case of a natural person, a photocopy of their identity card or other valid documents should be submitted; in the case of a legal person or other organization, a photocopy of its business license or organization certificate issued by the administration for industry and commerce. Further, the above documents must be signed by the natural person, or, in the case of a legal person or other organization, be stamped with its official seal in addition to signature by its legal representative or the person in charge of the organization. In the latter case, the identity document of such legal representative or person in charge should be submitted. In the event of signature by an authorized person other than those mentioned above, a power of attorney and the identity document of the authorized person should be provided.

The trustee is responsible for reviewing redemption documents submitted by the beneficiary. The opening day for trust unit redemption by a beneficiary is the first opening day after 15 days following the date of receipt of the beneficiary’s request for redemption.

Transfer of the redeemed funds

Within five working days following the opening day for redemption, the custodian bank transfers the redeemed amount to the beneficiary’s account in accordance with transfer instructions by the trustee.

In the case of a beneficiary’s redemption of trust investment within the lock-up period, the custodian bank will, at the trustee’s instruction, deduct any redemption fees payable to the trustee before transferring the redeemed amount to the beneficiary’s account.

The redeemed amount to be transferred to the beneficiary’s account is calculated as follows:

Redeemed amount = U * W, where U is the number of units to be redeemed at the request of the beneficiary, and W is the net worth per unit on the opening day concerned.