How do redemptions work if I make multiple contributions to the same exchange fund?

Exchange fund redemptions are processed on a last in, first out (LIFO) basis, meaning the most recent contribution is redeemed first. Each contribution has its own seven-year holding period, tracked separately from prior investments.

When you make multiple contributions to the same fund, newer contributions sit on top of earlier ones for redemption purposes. Because redemptions cannot skip over newer shares, a later contribution that has not yet completed its seven-year holding period can block access to earlier contributions, even if those earlier contributions have already satisfied their seven-year requirement.

As a result, additional contributions can effectively extend your overall holding period for achieving qualified redemptions, with the most recent contribution typically determining when diversified liquidity truly opens up for that fund. For this reason, investors often plan contributions carefully, treat the fund as a long-term allocation, or use separate funds or vintages if they want more flexibility around timing.

Each contribution becomes eligible for the reduced 0.25% management fee after seven years in the fund, so earlier contributions can reach the lower fee while newer ones complete their holding period.