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Lipper: Don’t Panic About Illiquid Holdings In Mutual Funds

TedTed
in The Bullpen
FYI: The closure of the Woodford Income Fund has led to wide discussion about illiquid holdings in mutual funds. As a result of this discussion, asset managers have come under pressure as investors have begun to sell positions in funds in which they have identified illiquid holdings. Even as this reaction is in some cases understandable, the high level of outflows in some funds is surprising, since some of these funds now under pressure were quite clear about these holdings. Even if they weren’t, these holdings shouldn’t be a surprise to professional investors or advisors, since it is one of the duties of a fund analyst to evaluate the investment style of a fund manager and the respective risk of the portfolio to conduct an appropriate recommendation.
Regards,
Ted
http://lipperalpha.refinitiv.com/2019/07/monday-morning-memo-dont-panic-about-illiquid-holdings-in-mutual-funds/?utm_source=Eloqua&utm_medium=email&utm_campaign=00008DM_NewsletterLipperAlphaInsightFundInsightsWeekly_Other&utm_content=Newsletter_FundsWeekly_01July2019&elqTrackId=3e2df5d29274479db97df536cebb48d8&elq=3385c55a4d7042798510cdf10d45ff92&elqaid=49737&elqat=1&elqCampaignId=166
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