Even the suggestion of greater disclosure was not wholeheartedly welcomed by the funds industry. The European Fund and Asset Management Association cautioned against “too granular” metrics [that] investors…would have trouble understanding.”
Senior IA adviser Angus Canvin said liquidity risks needed to be put in the context of other risks. “It would be foolhardy to describe risk of liquidity on the same order of the disclosure of investment risk,” he said.
“We caution against disclosure that misleads investors by overstating the possibility that these tools may be used.”