What Is a Side Pocket?

The so-called side pocket account refers to when one or more assets in the fund portfolio lack liquidity, because these assets cannot be valued effectively, this part of assets can be stored in another bag, called a side pocket, and the remaining normal assets Called the main bag. When investors redeem the fund assets, they will first receive the cash corresponding to the assets in the main bag. At the same time, customers will wait until the side bag assets are active before receiving cash. ^[1]

Side pocket account

Right!

The so-called side pocket account refers to when one or more assets in the fund portfolio lack liquidity, because these assets cannot be valued effectively, this part of assets can be stored in another bag, called a side pocket, and the remaining normal assets Called the main bag. When investors redeem the fund assets, they will first receive the cash corresponding to the assets in the main bag. At the same time, customers will wait until the side bag assets are active before receiving cash. ^[1]