You may redeem your shares (i.e., sell
your shares to the Fund) on any day the Exchange is open. Your
redemption price is the next NAV per share calculated after
your order is received by the Fund. There is no redemption charge.
Normally, payment for shares redeemed will be made within three
days after receipt by the transfer agent of a written request
in good order. The Fund has the right to take up to seven days
to pay your redemption proceeds, and may postpone payment longer
in the event of an emergency as determined by the Securities
and Exchange Commission. If you purchased Fund shares by check
you may not receive redemption proceeds until there is reasonable
belief that the check has cleared, which may take up to 15 days
after payment has been received. Wires for direct accounts are
subject to a $10.00 fee.
You may send
a written request for redemption to:
Sequoia Fund, Inc.
c/o DST Systems, Inc.
P.O. Box 219477
Kansas City, MO 64121-9477
Your request must include your account number and the
number of shares to be redeemed or the dollar value of the amount to
be redeemed. If your redemption request is more than $25,000, if
your address has changed within the 60 days prior to the request, or
if you would like your check to be sent to a third party or an address
other than the address of record, your redemption request must include
a signature guarantee. A signature guarantee may be obtained from a
domestic bank or trust company, broker, dealer, clearing agency,
savings association, or other financial institution. An acknowledgment
by a notary public is not acceptable. If your request involves a
redemption amount of $250,000 or more, please include your telephone
number. Certain shareholders, such as corporations, trusts and estates,
may be required to submit additional documents.
If you choose to have your redemption proceeds sent to
the bank of record, please indicate if you would like to receive the
proceeds via ACH (2 business days) or wire (next business day, subject
to a $10 wire fee, and your bank also may charge an incoming wire fee).
If you are providing new bank instructions, the request must include a
signature guarantee. A signature guarantee may be obtained from a
domestic bank or trust company, broker, dealer, clearing agency, savings
association, or other financial institution. An acknowledgment by a notary
public is not acceptable.
If you chose to have your shares issued in certificate
form, your request must be accompanied by the outstanding
certificates representing such shares together with a standard
form of stock power signed by the registered owner or owners
of such shares. The signature on the stock power must be guaranteed.
By Telephone or Through the Internet
You may make a redemption request of $25,000
or less (per account per business day) by telephone or through
the Internet, which does not require a signature guarantee,
unless your address has changed within the 60 days prior to
the request. All other redemption requests must have signature
guarantees as described above. Certain shareholders, such
as corporations, trusts and estates, may be required to submit
If you plan to redeem Fund shares through
the Internet, please review the important information below
under “Information about Online Account Information
Payment of Redemption Requests
Unless otherwise prohibited by law, the Fund
may pay the redemption price to you in cash or in portfolio
securities, or partly in cash and partly in portfolio securities.
The Fund has adopted a policy under which the Fund may limit
cash payments in connection with redemption requests to $250,000
during any ninety (90) day period. As a result, the Fund may
pay you in securities or partly in securities if the amount
of Fund shares that you redeem is more than $250,000.
It is highly likely that the Fund will pay you in securities
or partly in securities if you make a redemption (or series
of redemptions) in the amount of $250,000 or greater.
When satisfying redemption requests with portfolio securities,
the Fund will deliver portfolio securities to you regardless
of whether you have a brokerage or bank account into which
you can take delivery of the securities.
If your redemption request involves more than $250,000
(or if your redemption request together with other redemption
requests during any ninety (90) day period equal in the aggregate
$250,000 or more) and you have a brokerage or bank account into
which portfolio securities can be delivered, you must provide
the Fund with information about the brokerage or bank account,
including the name of the broker or bank, their Depository Trust
Company (DTC) participant account number and your brokerage or
bank account number, and your telephone number at the time of
your redemption request.
If your redemption request involves more than $250,000 (or
if your redemption request together with other redemption
requests during any ninety (90) day period equal in the aggregate
$250,000 or more) and you do not have a brokerage or bank
account into which the portfolio securities can be delivered,
the Fund will determine the value of the portfolio securities
to be delivered to you in redemption as of the date of redemption
- If the portfolio securities are certificated,
the Fund will send you by registered mail a certificate
or certificates representing the securities promptly upon
its receipt of the certificate or certificates from the
issuer or issuers. The issuer or issuers of the portfolio
securities may not send certificates representing the securities
to the Fund for a period of days. You may be unable to sell
certificated portfolio securities registered in your name
until you have received the certificate evidencing the securities;
- If the portfolio securities are not certificated,
the Fund will send you a letter by registered mail confirming
that the portfolio securities have been registered in your
name by the transfer agent of the issuer.
As noted above, the Fund may take up to seven
days to satisfy a redemption request. To avoid delays in receiving
portfolio securities, you should establish a brokerage or
bank account into which the securities can be delivered and,
as set forth above, provide the Fund with the brokerage or
bank account information at the time of your redemption request.
You should understand that you will incur brokerage and other
costs in connection with the sale of any portfolio security
that you receive in connection with a redemption request.
You should also understand that, as a result of subsequent
market volatility, the net proceeds from the ultimate sale
of any securities that you receive upon a redemption may vary,
either positively or negatively, and perhaps significantly,
from the redemption value of your Fund shares. If provided
with notice in advance of your chosen redemption date, the
Fund’s management will assist you to the extent possible
to minimize this potential market exposure by providing you
in advance with a list of the approximate number and value
of the portfolio securities that you will receive.
Automatic Withdrawal Plan
You may elect a Withdrawal Plan, at no cost, if you own or
purchase shares of the Fund valued at $10,000 or more. Call
1-800-686-6884 for details and to establish a Plan.
Under the Plan, you may designate fixed payment amounts that
you will receive monthly or quarterly from a Withdrawal Plan
Account consisting of shares of the Fund that you deposit.
Any cash dividends and capital gains distributions on shares
held in a Withdrawal Plan Account are automatically reinvested.
Sufficient shares will be redeemed at NAV to provide the cash
necessary for each withdrawal payment.
Redemptions for the purpose of withdrawals are made on or
about the 15th day of the month at that day’s NAV, and
checks are mailed promptly thereafter.
If shares are registered in the name of a trustee or other
fiduciary, payment will be made only to the fiduciary.
As withdrawal payments may include a return of principal,
they cannot be considered a guaranteed annuity or actual yield
of income to the investor. Continued withdrawals in excess
of income will reduce and possibly exhaust invested principal,
especially in the event of a market decline. Consult your
own financial advisers about whether the Withdrawal Plan is
appropriate for you.
Information about Online Account Information and Transactions
You may visit us online at the Fund’s website at www.sequoiafund.com.
In addition to checking your Fund account balance, you may
purchase or redeem shares of the Fund through the website.
You may establish online transaction privileges by enrolling
on the website. You automatically have the ability to establish
these privileges, but you will be required to enter into a
users’ agreement through the website to enroll for the
privileges. Transactions through the website are subject to
the same minimums as other transaction methods.
The Fund limits the amount that you may purchase
through the website to $100,000 or less per day. To purchase
shares online, you must have ACH instructions on your account.
Only bank accounts held at domestic financial institutions
that are ACH members can be used for transactions through
the Fund’s website. Payment for purchases of Fund shares
through the website may be made only through an ACH debit
of your bank account.
The Fund limits the amount that you may redeem
through the website to $25,000 or less per day. Redemption
proceeds may be sent by check or, if your account has bank
information, by wire or ACH. Redemptions will be paid by check,
wire or ACH transfer only to the address or bank account of
You should be aware that the Internet is an
unsecured, unstable, and unregulated environment. Your ability
to use the Fund’s website for transactions is dependent
upon the Internet and equipment, software and systems provided
by various vendors and third parties. While the Fund and its
service providers have established certain security procedures,
they cannot assure you that inquiries, account information
or trading activity will be completely secure. There may also
be delays, malfunctions or other inconveniences generally
associated with this medium. There may also be times when
the website is unavailable for Fund transactions or other
purposes. Should this happen, you should consider purchasing
or redeeming shares by another method.
Neither the Fund nor its affiliates or its
transfer agent will be liable for any such delays or malfunctions
or for unauthorized interception or access to communications or
account information, provided the Fund and its service providers
have followed their procedures addressing online privileges. In
addition, neither the Fund nor its affiliates or its transfer
agent will be liable for any loss, liability, cost or expense
for following instructions communicated through the Internet,
including fraudulent or unauthorized instructions, provided the
Fund or its service provider accepting the instructions reasonably
believe the instructions were genuine.
Frequent Purchases and Redemptions
The Fund historically has been less at risk for frequent purchases
and redemptions of shares of the Fund by shareholders of the
Fund (“market timing”) than other mutual funds.
In addition, the Fund historically has not experienced significant
shareholder turnover. Nonetheless, because market timing activities
can be detrimental to the Fund’s performance, the Fund,
as a policy, discourages market timing and has a policy of
monitoring trading of the Fund’s shares for frequent
purchases and redemptions. Consequently, the Fund has implemented
certain surveillance procedures designed to detect and deter
market timing. Under these procedures, the Fund’s Compliance
Officer reviews shareholder transactions for potential market
timing activity. The Fund’s Compliance Officer also
reviews reports issued by omnibus account holders that detail
any potential market timing issues. If the Fund’s Compliance
Officer determines that certain transactions rise to the level
of market timing, the accounts in which those transactions
have taken place may be immediately “blocked”
and future purchases or exchange activity will be restricted
or eliminated for such account or accounts for such term as
the Compliance Officer shall determine.
Transactions Through Financial Services
Certain financial organizations such as broker-dealers, banks,
and service providers have made arrangements with the Fund
so that an investor may purchase or redeem shares through
such organizations. In certain situations, the financial organizations
may designate another financial entity to receive purchase
and redemption orders on the Fund’s behalf. The Fund
will be deemed to have received purchase or redemption instructions
when a financial organization receives the instructions, provided
that the instructions are in good order and have been transmitted
in a timely manner. Client orders received prior to the close
of the Exchange (currently 4:00 p.m., Eastern time), will
be priced at the Fund’s NAV next calculated following
the close of regular trading on that day. If you are a client
of a securities broker or other financial organization such
organization may charge a separate transaction fee or a fee
for administrative service in connection with investments
in Fund shares and may impose different account minimums and
other requirements. These fees and requirements would be in
addition to those imposed by the Fund. If you are investing
through a securities broker or other financial organization,
please refer to the organization’s program materials
for any additional special provisions or conditions that may
be different from those described in this Prospectus (for
example, some or all of the services and privileges described
may not be available to you). Securities brokers and other
financial organizations have the responsibility for transmitting
purchase orders and funds, and of crediting their clients’
accounts following redemptions, in a timely manner in accordance
with their client agreements and this Prospectus.
Publications other than those distributed by
the Fund may contain comparisons of Fund performance to the
performance of various indices and investments for which reliable
data is widely available. These publications may also include
averages, performance rankings, or other information prepared
by Morningstar, Lipper, or other recognized organizations
providing mutual fund statistics. The Fund is not responsible
for the accuracy of any data published by third party organizations.