What does it mean for a fund to be hard closed? What is fund closure? (SG)

Fund managers or ETF providers may decide to close a fund to new investments or wind it down entirely for several reasons. For traditional funds (unit trusts), a manager might close the fund if it has reached a specified amount of assets that precludes it from taking in more money. For Exchange-Traded Funds (ETFs), the fund's Board of Directors or Trustees may vote to close and liquidate the ETF upon the recommendation of the issuer, often because of low Assets Under Management (AUM) or unprofitability.

In such situations, we will inform you in advance of the implications the fund or ETF closure has on your portfolio and the possible steps you can take to mitigate any risks. Additionally, we will provide recommendations on similar replacement funds that you can reinvest into.