Is a liquidity rating system for asset managers a good idea? Is daily liquidity for investors necessary, when some such as pension funds invest for 10, 20, perhaps 30 years? Should gates or side-pockets, more traditionally used by hedge funds, be introduced?
As regulators voice their concerns about the liquidity risks of asset managers, the industry itself has privately started to question the framework underpinning long-term investment. One senior risk professional floats the idea of a