COVID-19: Considerations For Investment Funds

The COVID-19 pandemic will affect managers of hedge funds and other similarly structured open-ended private funds in a number of ways. The nature and extent to which any particular fund and its manager are affected by COVID-19 will depend on the stage and maturity of the fund, the investment objectives and strategies of the fund, the investor base of the fund and other factors.

Set out below are some issues that open-ended private fund managers may wish to consider in light of the COVID-19 pandemic.

CONSIDERATIONS FOR EXISTING FUNDS

Investor Relations

Communication with Investors

• As the COVID-19 pandemic evolves, it will be critical for managers to engage with their investors in an open and transparent manner. Each fund sponsor should be prepared to respond to questions about the health of its portfolio, the actions taken to mitigate exposure, and risk and the extent to which the fund modelled out and was prepared for any recession or market