Article preview: The liquidity of investment funds has come into sharp focus in recent weeks, following the trading suspension imposed on investors in the Woodford Equity Income fund. The fund, which reportedly had 85% of its assets invested in illiquid stocks, has been the cause of much debate. The Bank of England governor, Mark Carney, has now thrown his weight behind criticism of the fund, explaining that such funds are “built on a lie.” His comments refer to the inclusion of illiquid assets in funds which supposedly allow investors instant access to their money.
Illiquid funds built on a lie
This 463-word blog post considers comments made by Bank of England governor Mark Carney, about open ended investment funds offering investors daily access being ‘built on a lie’ when they feature illiquid assets. Written on 26th June 2019.
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