Wednesday May 6 2020
News Source: Fund Regulation
Focus: Liquidity Risk Management
Country: European Union
According to Fitch Ratings, at least 76 European mutual funds suspended redemptions in March 2020 due to increased demand for withdrawals from investors due to market volatility caused by the COVID-19 pandemic. Fitch Ratings estimates that these funds total USD 40 billion of assets under management.
The figure however could be much higher with Reuters reporting a quote from Steven Maijoor, Chair of the European Securities and Markets Authority (ESMA), estimating that a “modest” maximum of 100 billion euros in assets at funds were subject to redemption halts and other liquidity management tools during the market stress in March.
Click on the above link for further information.