Open-end securities investment funds are a form of investment funds that are non-fixed in size. The number of units in the fund may fluctuate at any time and investors are entitled to purchase or redeem units therein. In developed nations, open-end funds are mainstream investment tools that have been widely accepted. By investing in open-end fund, you can enjoy the wealth management advantage supported by the experts in professional fund companies.
The philosophy behind the Industrial Bank's fund agency service is simple: “Mutual Benefit, Mutual Growth” and "Service Stars from Sincerity”. By selecting choice funds, establishing self-service sales platform such as the Internet Bank and the Telephone Bank, the Bank constitute a “supermarket” of high-quality fund products which can be purchased by clients at ease.
One-stop Service: The Industrial Bank provides all agency services required for investing in open-end funds, including account opening, subscription, purchase, fund transfer, redemption, division of dividends and custody transfer.
Buy and Sell Anywhere: You can enquire about open-end funds or entrust the Bank to make an open-end fund related transaction on your behalf from any of the Bank's numerous outlets nationwide or through the Internet Bank, Telephone Bank or other e-services. This means that you can manage your investment from wherever you are.
Technological Support: in addition to being able to access the various services for open-end funds at Bank outlets, investors can also manage their open-end fund investments and check account details via e-services such as the Telephone Bank (95561) and the Internet Bank ( http://www.cib.com.cn ).
Comprehensive Wealth Management: You can have multiple investments with a single Industrial Bank card or current passbook, such as securities or open-end fund investments. Your account can also be used for making deposits and spending or paying off daily expenses in RMB or foreign currencies at the same time. With the Industrial Bank, investing and wealth management couldn't be easier.
24 Hour Services: Considerately designed investment and wealth management services are available at any time via the Bank's internet and telephone banking platforms.
Personal investors can purchase funds via the Industrial Bank in the following way:
(1) Apply for a wealth management card or current passbook
You will be required to apply for a wealth management card or current passbook and deposit the necessary funds before open-end fund services can be accessed.
(2) Open a Funds Account
Fill-out and sign a Fund Services Application Form (The form is in duplicate). Provide original proof of identification and photocopies (ID card, Passport, Officer ID, Soldier ID) as well as your wealth management card or current passbook. After your application has been processed by the system, the Bank will print out a Fund Services Application Receipt , which will be signed by bank staff. A copy of the receipt will be retained by the investor.
(3) Appraisal of Investor Risk Tolerance
All new fund investors are required to fill-out a Client Risk Tolerance Appraisal Questionnaire before they will be granted access to fund services. The Bank, according to this risk tolerance appraisal, will recommend suitable funds to the client. However, it must be noted that the Bank's recommendations are for reference only. Clients must make fund investment decisions based on their own risk tolerance capacity and bear all risks that may arise from such investments.
(4) Channels for Entrusting Transactions (over the counter, through Internet Banking, thrugh Telephone Banking etc.)
(a) Over the counter in Bank outlets
Investors who wish to entrust the Bank to subscribe to, purchase or redeem funds on their behalf can do so by producing a wealth management card or current passbook at a Bank outlet and filling out a Fund Services Commission Sheet . After the Bank has been entrusted to make a transaction, counter staff will print out a Fund Services Receipt , which is signed by Bank staff for confirmation.
(b)Through the Internet Banking
Once the investor's fund account applied for via the Bank has been confirmed by the fund company, the investor can activate online fund transaction services for the wealth management card or current passbook in which the fund account has been opened by producing proof of identification, the wealth management card in question and filling-out an Application Form for Industrial Bank “Natural Life” Family Wealth Management Card Services and signing an Industrial Bank “Natural Life” Family Wealth Management Card Usage Contract at a Bank branch.
Once activated, open-end funds will be able to be subscribed to, purchased and redeemed via the Bank's personal internet banking platform.
Investors can log-onto the Internet Bank and entrust the Bank to subscribe to, purchase or redeem an open-end fund or withdraw an order on their behalf. After successfully entrusting the Bank, a Fund Services Application Receipt can be printed out and signed for confirmation by a staff member at the counter of a Bank outlet.
(c) Through the Telephone Banking
Fund services are available via the Bank's customer service hotline 95561. The investor can activate telephone fund transaction services by producing proof of identification, the wealth management card in question (the card housing the fund account) or the current passbook and filling-out an Application Form for Industrial Bank “Natural Life” Family Wealth Management Card Services and signing an Industrial Bank “Natural Life” Family Wealth Management Card Usage Contract at a Bank branch . Once activated, open-end funds will be able to be bought and sold via the Bank's customer service hotline 95561.
Investors can call the customer service hotline on 95561 and entrust the Bank to subscribe to, purchase or redeem an open-end fund or withdraw an order on their behalf. After successfully entrusting the Bank, a Fund Services Application Receipt can be printed out and signed for confirmation by a staff member at the counter of a Bank outlet.
(d) Through Mobile Phone Banking
Fund services are available via the Bank's Mobile Phone Bank. The investor can activate mobile phone fund transaction services by producing proof of identification, the wealth management card in question (the card housing the fund account) and filling-out an Application Form for Industrial Bank “Natural Life” Family Wealth Management Card Services and signing an Industrial Bank “Natural Life” Family Wealth Management Card Usage Contract at a Bank branch. Once activated, open-end funds will be able to be bought and sold via the fund transaction section of the Bank's WAP mobile phone bank (https://wap.cib.com.cn).
Investors can log-onto the mobile phone bank and entrust the Bank to subscribe to, purchase or redeem open-end funds commissioned by the Bank on an instant payment transaction basis or withdraw an order on their behalf. After successfully entrusting the Bank, a Fund Services Application Receipt can be printed out and signed for confirmation by a staff member at the counter of a Bank outlet.
(5) Transaction Confirmation
All entrustments made to the Bank are subject to confirmation by the fund company. Therefore, investors can check whether or not the transaction has been successful via a bank outlet or e-service at least two working days after entrusting the Bank to conduct a transaction. Investors can check the confirmation status of their transaction at a Bank outlet with the second sheet of the Fund Services Transaction Receipt . Internet bankers can check the status of their transaction via the internet bank or at a Bank outlet with the second sheet of the Fund Services Transaction Receipt. Telephone bankers can check the status of their transaction via the customer services hotline 95561or at a Bank outlet with the second sheet of the Fund Services Transaction Receipt.
(6) Making Enquiries
Investors can access fund information, fund account information and transaction entrustment information by producing their wealth management card or current passbook at a Bank outlet. Internet bankers can access fund information, fund account information and transaction entrustment information via the personal internet banking service. Telephone bankers can access fund information, fund account information and transaction entrustment information via the customer service hotline 95561.
1. Risk grade assessment standards are given in the table below:
Equity Funds, Index Funds
2. Explanation of the rating scheme of the Client Risk Tolerance Appraisal Questionnaire for the Agency of Funds of the Industrial Bank.
☆ The questionnaire consists of 5 single-answer questions.
☆ The number of points given for each option is as follows: A = 0 points; B = 2 points; C = 3 points; D = 4 points.
☆ Point-based investor categorization scheme:
A: Less than 7 points: Conservative investor (the Bank advises that you make your investment in low-risk funds, such as currency funds.
B: 8-10 Points: Steady conservative investor (investing in mid/low risk funds such as bond funds can be considered)
C: 11-14 Points: Steady active investor (investing in mid/high risk funds such as hybrid funds can be considered)
D: More than 14 points: Active intrepid investor (high risk funds such as equity funds can be considered, based on your personal experience)
(1) Under what circumstances will I need to have multiple fund accounts?
A fund account is a type of account opened by the registry body of an open-end fund that is used to track the units in the fund that the investor holds and the fluctuations of these units. Owing to the fact that fund management companies have a choice of registering body for fund initiation, there exists the possibility that investors will require different fund accounts when investing in the funds initiated by different fund management companies. If the registering body of funds initiated by different fund management companies is the same, the same fund account can be used when investing in the funds of these companies.
For instance: the registry bo dy for classic funds of the CITIC Funds is the CITIC Fund Management Company, and will thus require a separate fund account. The registry body of funds of WanJia Asset Management, Changsheng Fund Management and Fortis Haitong Investment Management is the China Securities Depository and Clearing Corporation, and thus a single fund account can be used for the funds of these companies.
The registry bodies of funds can be found in the Fund Prospectus.
(2) I have opened a fund account at another fund agency, how do I buy funds through CIB?
Fund companies stipulate that any single investor can only open one fund account at any single registry body. If you have previously opened a fund account via another fund agency and supposing that you now wish to purchase a fund initiated by the same fund management company as before via the Industrial Bank, you will be required to provide counter staff with your fund account number. The counter staff will register the fund transaction relationship (i.e. open a transaction account) on behalf of the investor.
(3) After subscribing to an open-end fund, when will I be able to check m y quota in the fund?
Clients will only be able to check their subscribed fund quota after the fund management company has, according to regulations, verified fund capital and announced the establishment of the fund upon the elapse of the collection period. Before the fund has been established, clients will only be able to check whether their subscription has been approved by the registry body or not.
The fund quota confirmed by the fund management company that clients have subscribed to is the quota determined by deducting the subscription fee from the client's subscription sum and adding the interest incurred in the period between the confirmation of subscription and the establishment of the fund.
(4) After applying for the purchase of an open-end fund, when will I be able to check m y quota in the fund?
The outcome of the application for fund purchase and the confirmed fund quota can be usually checked two working days (fund working days) after the date of application.
(5) How do investors choose the means of distribution for fund gains?
In accordance with the Fund Prospectus , the default methods of distribution for gains made from fund investments are cash dividends or reinvestment of dividends. Investors that wish to change the method of distribution can do so at a bank counter after the purchased fund quota has been confirmed.
(6) Why has my subscription failed?
Failed subscription or purchase application usually results from failure to open the fund account. This might be due to the following: (1) a single investor has tried to open more than one fund account at the same registry body, i.e., users have previously opened a fund account at a different fund agency and are now trying to open another through the Industrial Bank; (2) bank staff have made an error during your application and selected the wrong type of documentation, for instance, “Business License” was chosen as the document type for a personal banking client.
(7) If subscription and application for purchase have failed, when will my money be returned?
If subscription and application for purchase have failed, your money will be returned to your bank account by the evening of the second working day following the date of transaction. Subscriptions and purchase applications can be made again from the third working day onwards.
(8) When will money redeemed from the fund go back into my account?
According to fund management company stipulations, money redeemed from the fund will go into investor's bank accounts by the evening of the third working day following the date of transaction. This money will be accessible from the fourth day onwards.
(9) How do I withdraw an order?
Subscription applications are not sent to the fund registry body until 16:30 on the day of application. Clients who wish to withdraw an application can do so over the counter in a Bank outlet before 16:30 on the day that an application for subscription has been made.
(10) How can institutional investors print out an account statement after subscribing to, applying for the purchase of and redeeming a fund, as well as after receiving dividends?
After subscribing to, applying for the purchase of and redeeming a fund, as well as after receiving dividends, institutional investors that require a bank statement to be printed out for accounting reasons can do so over a Bank counter after a member of staff has activated 2039 transaction enquiry.
(11) Can open-end fund transactions be made at any CIB outlet?
Yes. Fund quota subscribed to and purchased at one outlet of the Bank can be redeemed at another.
(12) Why have I not received account statements from the fund management company?
Fund companies send out account statements to open-fund investors from the Industrial Bank on a regular basis. Providing an inaccurate or incorrect address when applying for your fund account may result in this information not being able to be received. In such cases, please check and amend your address at a Bank outlet.
(13) Can funds be subscribed to and purchased at the back on holidays?
If fund companies are open for business on holidays, investors will be able to subscribe to and apply for the purchase of funds through the Industrial Bank. However, at present, subscriptions at fund companies can only be conducted on Saturdays and Sundays of the subscription period (issuing period).
Therefore, on Saturdays and Sundays, investors will only be able to make subscriptions for funds in the issuing period through the Industrial Bank.
(14) Can client information be changed during the subscription period?
Yes. After an application to modify client details has been submitted to the fund company, the fund company will confirm the success of the change provided it allows the modification of client information during the subscription period. Otherwise, notification of failure will be given.
As stipulated in the Fund Prospectus , fees for fund subscription, purchase and redemption will be collected by means of deduction. Please refer to the relevant Fund Prospectus for the fund companies that the Industrial Bank acts as an agent for.