On the first day of the Silver LOF "closed door to thank customers", the price rose by more than 7% after the trading suspension in the morning, and the capital game heated up.

**Source**: Wall Street Insights

**By**: Zishi Tang · Zheng Xiaojie

# The Intricate Capital Game Behind Fluctuations in Fund Premiums

The suspension of subscriptions for a popular fund often triggers a series of knock-on effects.

On January 28, 2026, after surging nearly 230% over 45 trading days, UBS SDIC Fund **completely** suspended subscription services for its Silver LOF (Listed Open-Ended Fund).

This decision also means the only public fund in the market primarily investing in silver futures has temporarily closed its doors to new investors.

On the first day of the suspension, the silver ETF resumed trading after a one-hour halt and continued to soar, gaining more than 7% in half a day—an even steeper increase than the previous trading day!

Earlier, UBS SDIC Fund announced that the suspension of subscriptions (including regular fixed-amount investments) was made "to protect the interests of fund share holders".

So far, this move has attracted widespread attention from investors and the market, and sparked more complex market reactions.

## Subscription Suspension: Upgraded Risk Control to Curb Risk Expansion

UBS SDIC Fund issued the announcement on suspending subscriptions for its Silver LOF on January 26, stating that it would block all new capital inflows (including subscriptions and regular fixed-amount investments) starting from January 28.

In fact, the fund had already begun tightening subscription restrictions long before this announcement. Its capital limit policies have been continuously tightened over the past few months, particularly on the quota for regular fixed-amount investments.

On October 15, 2025, the fund manager announced adjustments to the upper limits of regular fixed-amount investments for Class A and Class C shares, setting them at RMB 6,000 and RMB 40,000 respectively.

Over the following two months, these quotas were gradually reduced. The fund issued two announcements on October 20 and December 19, cutting the upper limits of regular fixed-amount investments to RMB 100 and RMB 1,000 respectively.

On December 29, 2025, the company announced the suspension of subscriptions for Class C shares of the Silver LOF, which are generally considered more suitable for short-term investors due to their subscription fee structure.

By that time, the subscription upper limit for Class A shares of the fund had also been tightened to RMB 100 per day.

Clearly, however, these measures failed to stem capital inflows. The full suspension of subscriptions starting January 28 means investors can no longer make new investments in either Class A or Class C shares.

From another perspective, this measure indicates that the fund manager is making strenuous efforts to control the expansion of the fund's scale, preventing investors from further exposing themselves to risks amid high market uncertainty.

## Communication via Official WeChat Account

In addition to tightening subscription measures, the fund manager has also frequently released cooling-off signals to the market.

On the evening of January 27, UBS SDIC Fund communicated with investors through its official WeChat account, issuing the following explanations regarding the trading halt of the Silver LOF:

- **Redemption**: The current suspension of subscriptions will not affect the redemption of existing shares, and investors can process redemptions as normal.

- **Secondary Market Trading**: During non-halt trading hours, investors can still trade fund shares normally on the secondary market through their securities accounts. In addition to the risk of net asset value (NAV) fluctuations, the trading price on the secondary market is also affected by other factors such as market supply and demand, systemic risks, and liquidity risks.

- **Trading Halt Mechanism**: Recently, the secondary market trading price of this fund has been significantly higher than its NAV, resulting in a substantial premium. We may apply to the Shenzhen Stock Exchange for a trading halt of the fund to warn the market of risks, with specific details subject to subsequent announcements.

UBS SDIC Fund also stated in the article: "We understand your attention to market opportunities, but in the long run, the secondary market trading price of the fund will fluctuate around its NAV. The current high premium is not sustainable, and investors need to be alert to price corrections caused by a cooling of market sentiment. Please view the situation rationally and make investment decisions prudently."

## Warnings on Premium Risks

In addition to measures such as the subscription suspension and moral suasion, UBS SDIC Fund has also issued special warnings on premium risks.

Since the start of 2026, UBS SDIC Fund has released multiple announcements on premium risks and trading halts/resumptions.

In January alone, the fund manager issued 17 warnings on premium risks and 12 announcements on trading halts and resumptions. The frequent early warnings indicate that the fund manager is highly concerned about the current market premium phenomenon, and has adopted frequent risk reminders to urge investors to make rational decisions.

According to Wind data, the premium rate of UBS SDIC Silver LOF has exceeded 40% as of the latest update. This means investors purchasing the fund on the secondary market are paying a price that is more than 40% higher than the fund's actual NAV.

Since the start of 2026, the price of UBS SDIC Silver LOF has risen sharply, with a cumulative increase exceeding 85%.

However, the divergence between the price and the NAV has continued to widen, with market sentiment driving the sharp surge in the fund's price.

The capital game is still unfolding, and notably, the gain of the Silver LOF further expanded on January 28 after the suspension of new subscriptions curbed the supply of additional fund shares.

### Risk Warning and Disclaimer

The market is risky, and investment requires caution. This document does not constitute personal investment advice, nor does it take into account the specific investment objectives, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this document are consistent with their specific circumstances. Any investment made based on this document shall be at the user’s own risk.