--- title: "Semi-Liquid Funds: Gating and Investor Limits" description: "Retirement planners: how sequence-of-returns risk and early inflation shocks can cut a retiree's safe withdrawal rate by half a percentage point or more." image: https://content.investmentsandwealth.org/hubfs/IWR-feature10.png --- [Skip to content](https://content.investmentsandwealth.org/publication/semi-liquid-funds-gating-and-investor-limits#main-content) [![Investments & Wealth Institute ](https://content.investmentsandwealth.org/hubfs/content-hub/iwi_logo_w294_h46.svg "Investments & Wealth Institute ")](https://investmentsandwealth.org/) Explore - [All Content](https://4812204.hs-sites.com/content-hub) - [Video](https://4812204.hs-sites.com/content-hub?type=Video) - [eBook](https://4812204.hs-sites.com/content-hub?type=eBook) - [Case Study](https://4812204.hs-sites.com/content-hub?type=Case+Study) - [Blog](https://4812204.hs-sites.com/content-hub?type=Blog) - [Podcasts](https://4812204.hs-sites.com/content-hub?type=podcast) - [Webinars](https://4812204.hs-sites.com/content-hub?type=webinar) - [Find An Advisor](https://www.investmenthelp.org/) - [Contact](https://investmentsandwealth.org/contact-us) - [My Dashboard](https://portal.investmentsandwealth.org/s/login/?startURL=%2Fs%2Fhome-page) - Certifications - [CIMA](https://investmentsandwealth.org/certifications/cima-certification) - [CPWA](https://investmentsandwealth.org/certifications/cpwa-certification) - [RMA](https://investmentsandwealth.org/certifications/rma-certification) - [Help Me Choose](https://investmentsandwealth.org/certifications/compare-iwi-certifications) - [Online Education](https://investmentsandwealth.org/online-learning-financial-advisor-ce) - [Conferences & Events](https://investmentsandwealth.org/financial-advisor-conferences-events) - [Experience 2026](https://experience.investmentsandwealth.org) - [Membership](https://investmentsandwealth.org/membership) - [Publications & Resources](https://content.investmentsandwealth.org/) - [Partner Solutions](https://investmentsandwealth.org/partner-and-sponsor) - [About](https://investmentsandwealth.org/about/mission-purpose-value) Investments & Wealth Review - Number 03, 2026 # Behavior Beats Education Knowing Your Limits on Semi-Liquidity Admin The recent tightening of withdrawal terms (known as "gating") at several semi-liquid funds has advisors fielding hard questions from clients. In this discussion, William (Bill) J. Kelly, CAIA®, founder of Educational Alpha, and Scott Welch, CIMA®, CEPA®, chief investment officer at Certuity, argue the problem isn't the products or the underwriting behind them. It's how they were sold and how investors were educated about what "semi-liquid" actually means. Kelly and Welch walk through where semi-liquid structures fit in a portfolio, as a convenience layer on top of long-term private allocations, not a substitute for genuine liquidity, why a 5-percent gating period still means a five-year wait for full access, and what advisors should be telling clients before they invest, not after headlines about gating make them nervous.   **Key Takeaways** 1. Kelly and Welch argue semi-liquid fund structures weren't mis-designed. They were mis-sold, with marketing that let investors assume "semi-liquid" meant readily accessible. 2. Even a fund with a 5-percent gating provision can mean a five-year wait before an investor's money is fully accessible. 3. Welch estimates a 70-to-80 percent portfolio allocation to semi-liquid assets could be defensible mathematically for some clients, but he wouldn't recommend it to most; illiquidity tolerance varies far more than the math suggests. 4. Both see semi-liquid vehicles as a convenience layer for long-term private-markets exposure, not the first place to look for liquidity when markets get volatile. Instant Access ## Read the Full Publication Our Members receive new publications by mail and in the Membership Newsletter. For immediate access—or if you’re not a member—complete the form below. ## About Investments & Wealth Review *Investments & Wealth Review* is a bimonthly magazine, written by award-winning authors from academic institutions and leading financial firms. 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