Fitch calls for examination of managers' liquidity skills

Fitch report calls for better liquidity management to deal with mismatch between daily redemption capacity and long-term investment horizon

Fitch Ratings is calling for greater scrutiny of the liquidity management skills of UK real estate fund managers. A recent report by the ratings agency, Open Ended Real Estate Funds - Challenges for Liquidity Management, points out three key areas for concern within the real estate fund market. It said investors have to understand the dynamics present in open-ended real estate funds, primarily the inherent liquidity risks for each vehicle. Fitch puts the onus on managers to realise the importance of embedding liquidity and stress-testing the portfolios. It also calls on them to impr...