- Advertisement -
- Advertisement -

Related

Daily Liquidity Cannot Always be Sustained

Latest Report

- Advertisement -

Stockholm (HedgeNordic) – The International Advisory Board for Fund Selection (IAB) has raised concerns about investors expecting daily liquidity from asset classes that do not always support the buying and selling on a daily basis. In a recent meeting in Madrid, the IAB discussed the mismatch between the liquidity of investment products and the liquidity of underlying assets.

The IAB is sponsored by Spanish fund platform Banco Inversis and comprises six members, including Per Lindgren, Head of Manager Selection at Skandia, among others. The six-member group reckons that regulatory attempts to balance the competing demands of investors with the objectives communicated by funds managers are increasingly difficult, as accelerating redemptions could alter the dynamic of funds and challenge their original purpose.

Professor Andrew Clare, an IAB member and Professor of Asset Management at London-based Cass Business School, argues that “appreciating the opportunities and risks relating to liquidity in the various asset classes is a question of investor education.” Clare also emphasizes that “investors expect to have daily liquidity in their property portfolio, that is, the option to complete commercial property transactions in a day” even if most people know that selling a house is not an instantaneous, easy and hassle-free process. “To have daily liquidity in property funds is just nonsensical. Of all the asset classes, it’s probably the biggest mismatch between product and underlying asset there is,” adds Clare. “In my view the industry needs to bite the bullet and explain to investors when they can’t have daily liquidity, particularly in property funds.”

The International Advisory Board for Fund Selection has the following members:

  • Per Lindgren, Head of Manager Selection at Skandia;
  • Dr. Dirk Rathjen, Institut für Vemögensaufbau;
  • Adam Smears, Head of Fixed Income Research at Russell Investments;
  • Ramon Eyck, Head of Emerging Markets Equities at a Gulf Sovereign Wealth Fund;
  • Dr. Andrew Clare, Professor of Asset Management at Cass Business School;
  • Guendalina Bolis, Managing Director and Head of fund selection at Inversis Gestion.

Image by Free-Photos from Pixabay

Subscribe to HedgeBrev, HedgeNordic’s weekly newsletter, and never miss the latest news!

Our newsletter is sent once a week, every Friday.

Eugeniu Guzun
Eugeniu Guzun
Eugeniu Guzun serves as a data analyst responsible for maintaining and gatekeeping the Nordic Hedge Index, and as a journalist covering the Nordic hedge fund industry for HedgeNordic. Eugeniu completed his Master’s degree at the Stockholm School of Economics in 2018. Write to Eugeniu Guzun at eugene@hedgenordic.com

Latest Articles

Elementa Tops Swedish Hedge Fund Universe in H1

After celebrating its ten-year anniversary in March, long/short equity fund Elementa closed the first half of 2025 as the best-performing Swedish hedge fund, delivering...

Asgard Winds Down Macro Strategy, Refocuses on Fixed Income

Less than a year after the launch of Asgard-Steno Global Macro Fund – a collaborative effort between macro strategist Andreas Steno Larsen and fixed-income...

Eric Strand’s Green-Gold 60/40 Alternative Roars Back to Life

After a two-and-a-half-year drought, including a rough start to 2025, AuAg Precious Green has taken off in recent months. The fund, Eric Strand’s innovative...

BNY Debuts Tail-Risk Overlay Fund

BNY Investments Newton, the specialist multi-asset and equity management arm of BNY Mellon, has launched the BNY Adaptive Risk Overlay Fund – a tail-hedging...

Taiga Fund Delivers Best First Half Since 2019

Usually operating under the radar, Norwegian long/short equity vehicle Taiga Fund delivered one of its strongest first-half performances to date – its best since...

Quirky Questions for Harold De Boer (Transtrend)

Not every conversation in the hedge fund world needs to revolve around alpha, trend signals, or trading models. In HedgeNordic’s Quirky Questions series, we ask industry...

Allocator Interviews

In-Depth: High Yield

Voices

Request for Proposal

- Advertisement -
HedgeNordic
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.