On 1 November 2011, Hua An Fund Management Co., Ltd. ("Hua An") issued the "Public Notice on the Expiration of Hua An International Balanced Fund", resolving on terminating the fund contract of Hua An International Balanced Fund (the "Fund") on the expiration date of its first investment capital preservation cycle, and on conducting liquidation and property distribution as well as honouring the undertaking of capital preservation upon expiration as agreed as of 2 November 2011.
Hua An International Balanced Fund is China's first QDII fund product. As one of theFund's overseas investment advisors, Lehman Brothers International (Europe) ("LBIE") was announced to have entered into administration procedure in September 2008. Represented by Llinks, Hua An initiated claims against LBIE at the Shanghai Higher People's Court (the "Court"), requesting the Court to terminate the cooperative relationship between Hua An and LBIE and demanding LBIE to indemnify all economic losses it had caused.
Earlier this year, Hua An and LBIE have reached a settlement agreement, and a civil mediation judgement was later on issued by the Court. As legal counsel to Hua An, Llinks advised on all aspects of this case.
