Minimum Redemption Amount / Minimum Holding Amount Clause Samples
The Minimum Redemption Amount / Minimum Holding Amount clause sets the lowest number of units or value that an investor must either redeem or continue to hold in a fund or investment product. In practice, this means investors cannot redeem amounts below a specified threshold, and after any redemption, their remaining balance must not fall below the minimum holding requirement. This clause helps the fund maintain operational efficiency and manage administrative costs by preventing small, uneconomical transactions and ensuring that investors retain a meaningful stake in the fund.
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Minimum Redemption Amount / Minimum Holding Amount. A partial redemption may be in an amount not less than the Minimum Redemption Amount as set out in Annex A for each Sub-Fund, which amount is subject to waiver, decrease or increase by the Management Company. It is expected that a Unitholder’s remaining investment in the Class will be at least the Minimum Holding Amount as set out in in Annex A for each Sub-Fund, which amount is subject to waiver, decrease or increase by the Management Company. The Management Company may redeem compulsorily all or some of the Units held by any Unitholder if the value of the Unitholder’s aggregate holding of Units in the Class falls below the Minimum Holding Amount.