Mundoval Fund added a ReFlow Liquidity program with a minimum fee rate of 0.14% on purchases of Fund shares. The program matters to investors because it is intended to help stabilize net Assets and manage capital gains, while redemption-in-kind payments can expose shareholders to Market Risk and transaction expenses.

Key Highlights

  • The supplement took effect immediately and updates the prospectus dated May 1, 2026.
  • ReFlow applies a minimum fee rate of 0.14% to each purchase of Fund shares.
  • The fund may satisfy larger Redemption or repurchase requests partly or wholly with readily marketable securities valued at NAV.

ReFlow as an Alternative Cash Source

Each Business day, ReFlow can purchase shares up to the value of net shares redeemed by other shareholders for settlement on the next business day. This arrangement gives the fund an alternative cash source when shareholders’ redemptions exceed purchases by other shareholders. The purchase amount is tied to the value of net shares redeemed, so the arrangement is described in relation to the fund’s daily net redemption activity.

The mechanism does not state that ReFlow purchases shares without limit. Instead, its permitted purchase amount is limited by the value of net shares redeemed by other shareholders for the applicable settlement. This establishes a connection between the shares being redeemed and the shares ReFlow can purchase.

Daily Purchase and Settlement

The timing of the arrangement is based on each business day. ReFlow’s purchases are for settlement on the next business day, making settlement timing part of how the alternative cash source operates. The arrangement therefore addresses the fund’s net redemption activity through purchases associated with the following business-day settlement.

The article describes ReFlow’s purchase capacity by value rather than by a stated number of shares. That value is the value of net shares redeemed by other shareholders, and the stated limit applies to the shares ReFlow can purchase for settlement on the next business day.

Rights and Privileges

ReFlow holds the same rights and privileges as other shareholders. The arrangement does not describe ReFlow as having a separate class of Shareholder rights or privileges. Its position is presented as that of a shareholder with the same rights and privileges as other shareholders.

The fund’s adviser says the arrangement assists with stabilizing net assets and managing capital gains. Those are the purposes identified by the adviser in describing the arrangement.

Fees and Market Liquidity

Fees may be higher during periods of low market liquidity. This statement identifies market liquidity as a condition that can affect fees connected with the arrangement.

The liquidity-related fee statement appears with the ReFlow terms and redemption rules. Accordingly, investors considering the arrangement should recognize that the fees may not remain the same during periods of low market liquidity.

Updated Redemption Provisions

Effective immediately, the supplement also updates the prospectus dated May 1, 2026. The update allows the fund to satisfy larger redemption or repurchase requests partly or wholly with readily marketable securities valued at NAV. This provision applies to larger requests and concerns the form in which the fund may satisfy them.

The securities may satisfy a request in part or in full, rather than requiring the request to be satisfied entirely with cash. Their valuation is at NAV, as stated in the updated prospectus provision.

Risks When Receiving Securities

Shareholders may face market risk until the readily marketable securities are converted to cash. The value of those securities can therefore remain relevant after the fund satisfies a larger redemption or repurchase request with securities valued at NAV. The article identifies market risk as applying during the period before conversion to cash.

Shareholders may also face transaction expenses until converting the securities to cash. These expenses are separate from the statement that fees may be higher during periods of low market liquidity.

Source(s)

  • https://www.sec.gov/Archives/edgar/data/1293530/000141304226000715/mundsupp082726.htm