If the total balance of a fund in which you have invested becomes negative, the system starts an automatic process that ends your investment in that fund.
What happens automatically?
You receive a forced-redemption notification. The system sends an email explaining that the investment has been forcibly redeemed.
The redemption amount is zero. Because the fund’s total balance is negative, no redemption proceeds are available.
The invested amount is lost. The original investment cannot be recovered through the redemption.
The investment relationship ends. The system automatically ends your relationship with the fund.
The investment record is updated. It shows a forced redemption with a redemption amount of zero.
What can’t an investor do?
Continue holding the fund. The system ends the investment even if you would prefer to remain invested.
Request a partial redemption. The system redeems the entire investment.
Recover the original investment through the redemption. A negative fund balance means there are no redemption proceeds available.
What can an investor do next?
Review the forced-redemption notification.
Review available information about why the fund developed a negative balance.
Consider other funds or investment options available on the platform.
If you still want to invest with the same Fund Manager, wait to see whether they establish a new fund.
Reassess your portfolio, risk tolerance and future investment decisions.