Monthly Redemption (Retraction) Feature for Closed-End Funds

Monthly Redemption (Retraction) Feature for Closed-End Funds:  The ability to sell units back to the fund on a monthly basis.  The calculation of the proceeds to be paid to the unitholder is defined in the fund’s initial public offering prospectus.  Monthly redemptions are no longer popular, although they may be found on older closed-end funds, and usually require a pre-determined notification period.  Typically, there are costs to the holder to utilize a monthly redemption feature.