Use of ReFlow can reduce sales of portfolio securities required to meet redemptions and help avoid forced or hurried sales that exacerbate market impact costs.
Providing liquidity when needed can reduce or eliminate redemption-related borrowing costs and the increased volatility of fund returns that accompanies use of leverage.
Reducing the amount and increasing the predictability of cash outflows to meet redemptions can reduce fund cash reserves required to be maintained for redemption purposes.
Meeting ReFlow’s redemptions in kind can reduce required sales of appreciated holdings, reducing net realized capital gains and lowering annual fund capital gain distributions.
In-kind redemptions provide a mechanism for removing low-basis portfolio positions without selling them, increasing management flexibility that can enhance fund returns.
Capital is allocated through a Dutch Auction, similar to U.S. Treasuries auctions. The minimum bid is 14 basis points; highest bids are filled first.
Participation can be fully automated so that a standing bid is triggered when the prescribed conditions are met.
ReFlow’s share positions are automatically redeemed into any offsetting daily net inflows or after a holding period of eight days.
ReFlow accepts in-kind distributions of stocks trading in the U.S. or in non-U.S. markets whose trading hours coincide with U.S. market hours.
No set-up or maintenance charges. Fees are transaction-based, transparent, and qualify as a bona-fide fund expense. Fund board approval is required.
For more information on ReFlow's Redemption Service, or to speak with a member of our team, contact us via the form below.
