ESMA report highlights liquidity concerns for Alternative Investment Funds

08 April 2021

Metadata
Provider: 
ECEC
URL: 
https://www.esma.europa.eu/press-news/esma-news/esma-report-highlights-liquidity-concerns-alternative-investment-fundshttps://www.esma.europa.eu/press-news/esma-news/esma-report-highlights-liquidity-concerns-alternative-investment-funds
Retrieved on: 
Friday, April 9, 2021
Information
Tags: 
Money, Finance, Economy, Investment fund, Financial market, Alternative investment, Institutional investors, Mutual funds, Hedge fund
Summary
Key Points: 
  • 08 April 2021

    Fund Management

    Risk Analysis & Economics - Markets Infrastructure Investors

    The European Securities and Markets Authority (ESMA), the EU securities regulator, today publishes its third annual statistical report on the Alternative Investment Fund (AIF) sector.

  • The report has found that the sector increased by 15% in 2019 to EUR 6.8trn in net assets from EUR 5.9trn in 2018.
  • The main risks faced by the sector relate to a mismatch between the potential liquidity of the assets, and the redemption timeframe offered to investors.
  • This is particularly the case for real estate funds and funds of funds.
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