Levels of liquidity in the UK mid and small-cap space are again under scrutiny following Schroders' decision to overhaul two funds to guard against the problem.
Paul Marriage, manager of the Schroder Absolute UK Dynamic fund, recently reopened his soft-closed fund at £220m but moved from daily to weekly dealing on the portfolio, citing lack of liquidity in the marketplace. In a letter to shareholders, Schroders head of UK intermediary Robin Stoakley said: "The speed, volume, and price impact of the fund's share trading has been affected by reduced market liquidity." The group also overhauled its UK Absolute Target fund to give it a pan-European remit, which it said would allow manager Steve Cordell to take advantage of better liquidity in the...
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