Cache Exchange Funds are designed as long-term vehicles, and a seven-year holding period is required to fully preserve the tax-deferral benefits of the exchange fund structure, as per current tax laws.
At the time of contribution, investors choose between two options:
Hold contributed stocks within the fund
Your stocks remain in the fund’s portfolio and are not included in an ETF contribution. This path offers more direct access to early liquidity. If you need to redeem before the seven-year term, you may request an early redemption, subject to availability. A 0.10% annual liquidity fee is added to your management fee to help offset the risk of early withdrawals.
Index Sync eligibility
Your contributed stocks may be included in a diversified basket that the fund contributes to a benchmark-aligned ETF in exchange for ETF shares. If you require early liquidity, we’ll assess your redemption request on an as-available basis, considering fund capacity, market conditions, and the interests of all investors.
In either scenario, the full tax benefits of the exchange fund structure are only preserved if you remain invested for the full seven-year term. Early redemption may result in the loss of tax deferral.