The coronavirus ("COVID-19") pandemic
continues to disrupt global markets and business operations causing
unprecedented challenges and risks to asset managers and their
investment portfolios. Through our discussions with a number of
private asset managers, focussing primarily on alternative assets,
we have identified several considerations relating to operational
and legal compliance matters for asset managers and their
portfolios, which are summarized below.
Investment Portfolios: Carpe Diem (carefully)
Investment Policies and Strategies
The market disruption caused by the COVID-19 pandemic has
created new investing opportunities as well as the need to adjust
related strategies. Managers should continue to carefully review
their investment policies and restrictions to determine whether
they can invest (or maintain investment) in asset classes that may
be exhibiting distressed tendencies or which, as a result of
pricing anomalies, may exceed stipulated
