Why investors need to understand redemption freezes before getting into alternatives

Globe & Mail
December 15, 2022.

In a Globe Advisor article, Ida Khajadourian, Portfolio Manager and Investment Advisor at Richardson Wealth stresses the importance for advisors and clients to understand a product, including liquidity restrictions.

“[Investors] should understand that, under extreme circumstances, a fund might freeze redemptions, known as “gating” to prevent investors from pulling their money out of the investment product, but can be necessary to protect the fund, unitholders and investors.

It’s not something you see often, but in times like this, as an investor, I would want companies to manage the situation for a positive outcome versus having a run on the fund that’s impacting everybody negatively.”

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