redemption request

These funds also received substantial redemption requests over the weekend.

In 2002, one investor said, the fund had redemption requests for an additional 25 percent of its capital by September.

The fund allows investors to exit only twice a year, and redemption requests for the latest period were due by May 31.

Funds try to keep cash on hand to meet redemption requests but must often sell shares to fulfill customers' orders.

"We are evaluating all redemption requests received to date and will report back to you when we have completed our analysis," the letter read.

Then there are the trades that are intended primarily to meet redemption requests or to put new cash to work in the market.

Among them, Fidelity now tracks hourly levels of incoming cash and redemption requests from shareholders.

According to the letter, Monday was the deadline for Oct. 31 quarterly redemption requests.

Over the weekend, too, fund investors made substantial redemption requests, particularly at Fidelity, the country's largest fund company.

Each reward was delivered within twelve weeks from the date redemption request is fully processed, unless stated otherwise.

Fedwire pays some of the proceeds of redemptions requested before maturity.

A: A spokesman for Vanguard confirmed that the account statement issued after a redemption request does not list specific lots of shares sold.

According to a letter to investors in 2000, Gotham Partners had received $108 million in redemption requests, almost a quarter of its capital.

"As you know, the multistrategy funds have recently received substantial redemption requests," Mr. Maounis said in the letter.

Money managers traditionally maintain cash assets in mutual funds for two reasons: to handle redemption requests from shareholders and to protect the fund against declining share prices.

A fund that finishes at or near the bottom of quarterly or yearly performance rankings, for example, will almost certainly receive a large number of redemption requests.

A fund that receives many redemption requests will have to sell some of its positions to honor them, even when the prices of its stocks are unfavorable.

Delays in processing redemption requests mean that three or four weeks can elapse between the date you request a redemption and the actual sale of the shares.

If this fund had been attracting new money earlier this year as rapidly as it received redemption requests, it could have met those requests without selling any stocks.

Frank Giordano, founder of TCA Fulfillment, claims "We get paid for every redemption request we enter in the system.

When the bond market came apart this spring, many fund managers were forced to unload securities in order to meet the redemption requests of disgusted shareholders, Mr. Teall said.

The large amount of redemption requests during the credit crisis have caused the money market funds to scale back lending to banks contributing to the credit freeze on interbank lending markets.

Transaction costs increase, subtracting from the value of the fund, and rapid-fire trading can place a burden on a fund's management, forcing it to keep more cash on hand to satisfy steady redemption requests.

The professors assume that "liquidity-motivated buys" are those that occur when there is a large inflow of new cash, while "liquidity-motivated sells" occur amid a large number of redemption requests.

Fitch stated that they are "concerned that the recent performance of Kensington and Wellington and future challenges to the broader market may increase redemption requests in 2008 and into 2009, eroding the funds' capital cushion".