MSCI: Seven UCITS funds in danger of Woodford-style liquidity crisis

Breaching SEC rules

David Brenchley
clock • 2 min read

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...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Funds

Schroders to adopt Sustainability Focus label for Global Sustainable Value Equity fund

Schroders to adopt Sustainability Focus label for Global Sustainable Value Equity fund

Update to prospectus early next year

Cristian Angeloni
clock 13 November 2024 • 1 min read
FundCalibre adds Regnan Sustainable Water and Waste to 'Elite Rating' suite

FundCalibre adds Regnan Sustainable Water and Waste to 'Elite Rating' suite

Two other funds added to watchlist

Linus Uhlig
clock 13 November 2024 • 2 min read
Baillie Gifford Japanese fund added to Hargreaves Lansdown Wealth Shortlist

Baillie Gifford Japanese fund added to Hargreaves Lansdown Wealth Shortlist

Despite recent underperformance

Linus Uhlig
clock 13 November 2024 • 2 min read
Trustpilot