Mike Newell, DLA Piper

From a legal point of view people arm the fund with instruments like side pockets and suspension funds so they can manage the market turmoil if illiquidity comes.Investors are scared when they hear of these instruments being used. Their use sends a signal that people should get out of these funds. Managers are reluctant to use them because they want to create as much liquidity as possible.

Once you have a gate, a redemption request or a suspension, a message is sent to the market that there are s