Redemption gates

Redemption gates are liquidity management instruments. They can be used to limit the redemption of fund units. When this instrument is used, all sell orders received are only partially executed. The unexecuted portion of the sell order expires. These rules are intended to ensure equal and fair treatment of all unit holders, even in the event of a sharp increase in redemptions. The fund and the remaining unit holders are to be protected. In the event of massive payouts, no assets should have to be sold at unfavourable prices.

Example: When this instrument is used, all sell orders are only considered at, for example, 80%. The remaining 20% of sell orders are not executed and expire.