UIF investors to have new opportunities in unit redemption
15 January 2021
News
Shareholders redeeming their units in unit investment funds (UIFs) which are open only to qualified investors and shareholders in exchange traded UIFs are now entitled to, beside monetary payments, payments in the form of other asset holdings of the funds (e.g. real estate).
The regulator’s ordinance introducing requirements for this procedure has been registered by the Ministry of Justice. It becomes effective from 1 February 2021 concurrently with the relevant amendments to the investment funds law.
The investor’s new right to claim assets for unit redemption is to enhance the investment appeal of UIFs. This right should be stipulated in the fund’s trust management rules.
Preview photo: Serjio74 / Shutterstock / Fotodom