SEC Greenlights Shares That Pay More If You Stick Around Longer
Published Date: 3/25/2026
Notice
Summary
Savvly Fund #3 and Savvly Advisor, LLC want permission to offer different types of preferred shares that pay out varying amounts and can be bought back early or when a shareholder hits a certain age. This change aims to reward investors who stay invested longer with bigger returns. If no one objects by April 14, 2026, the SEC will likely approve this plan.
Analyzed Economic Effects
5 provisions identified: 1 benefits, 3 costs, 1 mixed.
Extra Returns for Long‑Term Investors
You could earn extra returns if you stay invested until a payout age (80, 85, 90, or 95). The fund issues special preferred “Tracking Shares” that collect early‑withdrawal penalties from others and reallocate that "excess value" to shareholders who remain until a payout age.
Large Penalty for Early Withdrawal
If you withdraw early (voluntarily or upon death), you get 75% of your purchase price plus 1% per year invested (up to 100%), or the fund's NAV if that is less, and you generally receive no value for Tracking Shares for Units with payout ages you haven’t reached. Partial early withdrawals are allowed on similar terms.
Limited Liquidity and Transfer Rules
You cannot sell or transfer shares on an exchange — shares are non‑transferable except to your estate or beneficiaries at death and are not listed. You can get paid at payout ages (80, 85, 90, 95) only if you have held the Unit at least five years, and payouts are generally made in‑kind as S&P 500 ETFs less a payout expense.
Ongoing Fees and Small Dividend on Tracking Shares
Tracking Shares pay a cumulative dividend of 0.02% of their repurchase price each year, and the fund will charge administrative, reallocation, and payout fees (including a reallocation fee and a payout expense) that are deducted from the excess value allocated to Tracking Shares.
Allocation Based on Age and Longevity Data
The fund’s Allocation Formula uses your age, years invested, investment size, and longevity factors from U.S. Social Security Administration data to decide how much excess value is reallocated to Tracking Shares. That means allocations will vary across shareholders based on those objective inputs.
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Key Dates
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