Investment Funds: Opportunities During Covid-19

The coronavirus pandemic has created unprecedented circumstances for business operations globally. Economists have warned the fallout could be similar to that of the 2008 recession causing governments and central banks around the world to implement numerous measures to counteract the economic disruption caused by the pandemic. These measures include lowering interest rates, loan programs, tax cuts and various new programs to help market liquidity.

Fund managers are as affected as anyone by the coronavirus shutdown and while many fund managers concerned with liquidity issues are activating their gating provisions in order to limit redemptions or suspending redemptions altogether, some fund managers are taking advantage of opportunities generated by such distressed economic conditions. And these opportunities continue to flow into the Cayman Islands in the form of new fund formations.