Seven European-domiciled UCITS funds could be at risk of a liquidity crisis due to holding too many illiquid assets, research from MSCI has found.
The data and index provider screened around 400 UCITS funds, in a blog post titled Is there another Woodford waiting to happen?, to find out whether there was potential for another episode such as that seen at Woodford Investment Management, which saw its flagship LF Woodford Equity Income fund suspended in early June. The universe was defined as European funds with similar characteristics as Woodford's, with assets under management greater than €1bn that primarily invest in equities. US rules from the Securities and Exchange Commission (SEC) require open-end funds to classify their i...
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