Yes, though your redemption options depend on the election you make at the time of contribution.
When you join the fund, you’ll choose between two paths:
Hold your contributed stocks within the exchange fund – you receive more direct access to liquidity. A 0.10% liquidity fee is added to your annual management fee to help manage the risk of maintaining this flexibility. Your stocks will remain in the fund and will not be included in an ETF contribution.
You will not receive ETF shares at redemption. If you redeem after seven years, your redemption basket will consist of 20-25 individual stocks.Elect Index Sync eligibility – your contributed stock may be included in a diversified basket the fund contributes to an ETF. If you need liquidity before the seven-year holding period ends, redemptions will be handled on an as-available basis, considering fund capacity, market conditions, and the interests of all investors. We maintain a forward-looking liquidity model by security and will work to fulfill redemption requests depending on market conditions and fund capacity.
If your stock was included in an ETF contibution, the ETF will be sold and your early redemption will be in cash, less the early redemption fee. Taxes are not deferred on an early redemption, and there will be a special allocation of gains issued via a K-1.
Please note: while rare, Cache retains the right to temporarily restrict redemptions in the event of extreme market volatility, as outlined in the fund’s offering documents.