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Cache Exchange Fund Details
The 7-Year Timeline
Can investors access their funds before the seven-year term ends?
Can investors access their funds before the seven-year term ends?
Updated over a week ago

Cache funds are structured to promote long-term investment, but they do provide mechanisms for early access under certain conditions:

Lock-Up Period: We typically institute a two-year lockup, during which investors cannot withdraw their contributions at all. See more about the lockup period.

Early Redemption Fees: Investors who choose to withdraw their funds before the seven-year term ends may do so, but it often incurs a penalty fee. This fee is 2% of the value of the withdrawn amount, which is meant to discourage early withdrawals and maintain fund stability.

Return of Original Shares: In cases of early withdrawal, investors generally receive the original stocks they contributed, rather than a diversified portfolio. Redemption requests are satisfied by distributing your original contribution back to you at a rate that is the lower of:

  1. The value of the stock you contributed, calculated at the time of redemption

  2. Or the value of your exchange fund shares based on the fund’s current net asset value.

The ability to withdraw a diversified portfolio while deferring taxes opens up only after seven years. See more details.

If it’s helpful, we also have a detailed explanation of the seven year holding requirement.

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