What Are the Risk Implications of COVID-19 on Your Funds?
We are all bearing witness to the escalating number of Coronavirus (COVID-19) infections across the globe. As countries around the world step up to aggressively combat the spread of this disease, it has become increasingly apparent that our collective way of life is being redefined on a daily basis.
The impact on the financial markets is substantial and the closing of restaurants, bars, and retail outlets is causing widespread economic suffering. And whilst a boost for the Technology and Communication sectors has come into view as employees in most of the countries throughout Europe shift to working remotely from home, Tourism and Energy sectors have been hit due to containment restrictions. The fear factor among market participants is causing additional uncertainty.
Investors may be forced to redeem their investments in order to limit their losses, or worse, avoid bankruptcy. The resulting negative market impact may create liquidity issues for fund managers, who may be unable to meet their redemption obligations.
How long we will remain in this scenario is unknown, nor can we predict how great a hit the financial markets will take in the upcoming weeks and months. However, what can be done to mitigate this uncertainty is to identify and measure the risks generated by the current market situation, to anticipate, manage and control these risks, provide transparency to your board of directors and, take appropriate action in the best interest of your investors.
We operate around the principle that if our people have a stake in the business, they will do a better job for our clients. We have a committed and stable team, as they see the benefit of long-term value creation through building long-standing relationships. We build value for clients, and their end customer.
You can have the best technology and the most efficient processes in the world, but if you don’t have the people to operate them, your business is worth very little. Thus, our biggest asset is our team of professional and passionate experts.
We operate next generation technology through a combination of in-house, and best in market solutions to deliver an impeccable service and use technology to excel in both service delivery and efficiency.
We delight in valued long-term partnerships with clients, team, industry partners and our stakeholders. We aim to work with clients who share our belief in the importance of building strong partnerships over time.