Soft close vs hard close
A soft close restricts new investors but allows existing unit holders to keep contributing. A hard close stops all new contributions, including from existing investors.
When a fund's assets under management reach a level where the manager judges further inflows will dilute returns — typically in concentrated NZ-equity, small-cap, or capacity-constrained alternative mandates — the fund may close to new investors.
A soft close blocks new direct investors and new platform users but allows existing unit holders to keep adding to their position through dollar-cost-averaging or Regular Investment Plan flows. A hard close halts all new contributions, including from existing investors, leaving only the redemption door open.
Closures are announced through the Quarterly Fund Update, a PDS amendment, or a manager notice on the Disclose register. Re-opening is at the manager's discretion and is signalled the same way.
Related terms
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QFU · Fund Update
Quarterly Fund Update (QFU)
A standardised FMA-mandated quarterly report each NZ retail managed fund publishes, summarising fees, returns, risk indicator, asset mix, top-10 holdings and fund size.
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PDS
Product Disclosure Statement (PDS)
The headline legal document a NZ managed fund or KiwiSaver scheme provides to retail investors, summarising the fund, fees, risks, and how to invest.
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Disclose register · disclose-register.companiesoffice.govt.nz
FMA Disclose register
The official New Zealand register of every retail managed-investment scheme — the primary public source for fund PDSs, SIPOs, OMIs, Quarterly Fund Updates and full-portfolio holdings disclosures.