• When, exactly, do the changes apply? • Is closure permanent or temporary, when will the decision be reviewed, how will it be communicated? • If deferred settlement rules are to apply, is the new process fully defined? • If redemption windows are proposed, how are these to be administered? How do different requests rank, is the liquidity rationing process transparent? • Will administration of new access rules cater equally to direct investors as well as to unit holders via platforms? • If redemption requests are accepted, but not settled for extended periods, how will pending trades be tracked? • Will distributions be affected, if so, how?
• Is there a lack of information on the true value of the fund’s assets (and therefore suspension in unit pricing)? • Are normal information flows affected? Will websites and/or written communications to end investors be kept up-to-date? • Will formal reporting (statements, tax reporting) by the fund manager be suspended or delayed? • Has the fund been removed from active review by research houses? • How are changes in status being reflected in platform menus and dealer group recommended lists?
• Has a supplementary PDS been issued? • Can the fund manager provide guidance on their intended treatment of hardship cases for exceptional redemption requests? It will be a challenge for the whole industry to maintain the confidence of investors during such times of stress. While it is inevitable that the market cycle will turn, the memories of how the industry responded may linger a little longer. We can’t turn to the last page of the book to see how it ends. It hasn’t been written yet. What can be done is to provide a narrative that captures what is known, clear communication, and a desire to jointly manage the journey.
