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Financial Dictionary - Reimbursement fee

Reimbursement fee

A fee that the management entity may charge the participant when it sells its units in an investment fund. The Fund prospectus or the quarterly report will state the amount.

The unit holder will have to pay purchase and redemption fees of up to 5%. This fee varies depending on the period in which the fund's units have been held.

In most cases, what are known as guaranteed funds have a redemption fee. This fee might not apply, however, in certain cases and dates known as liquidity windows. Participants will have to send their order within the stipulated dates and always with the advance notice indicated in the prospectus to benefit from liquidity windows.

The redemption period varies depending on whether it is for capital or real estate investment funds.

  • Capital investment funds must pay the redemption within no longer than three business days.
  • Under prevailing regulations, real estate investment funds must be able to be redeemed at least once a year.

Another option is to transfer the fund, i.e. to redeem it and to immediately purchase another. This gain or loss has no tax effect, is as if no redemption had been requested as far as the tax agency is concerned.