Liquidity Options For Fund Managers

COVID-19 has caused significant social and economic disruption across the globe. This has created some significant challenges for the investment fund industry, and as the crisis unfolds fund managers may need to consider their options for managing liquidity in the funds they manage.

We have set out some of the tools that may be at the disposal of fund managers during this challenging period, along with some of the Jersey law considerations that they may need to consider.

Some practical points

There are a number of practical points that managers will need to consider whilst seeking to manage the liquidity of their fund vehicles:

• Even during times of crisis, a manager is constrained by the powers that are granted to them under the terms of the fund documents, and they will generally not be able to take any actions that are not expressly permitted under those documents.