Where will it come from?

Markets crash when the unexpected happens. And crises at funds often occur in places where no one could have anticipated that problems would occur.

By way of background there are a lot of gloomy fund managers wandering around at present. The fourth quarter of 2018 was particularly brutal. One estimate puts loses by European fund managers alone at $100 billion in the quarter. For example, Amundi lost $7.4 bn over this period.

Might perhaps the next fund crisis come in the UCITS sector, perhaps a liquidity problem across a number of alternative UCITS funds? How much time do the boards of alternative UCITS fund spend discussing whether they have any real risk of not being able to meet their liquidity terms? To read more on this topic see the February issue of The NED.