| Remember the days when SWFs were considered the saviours of the universe? The white knights of the banking crisis? The clients every asset manager wanted to have. Well, fast-forward seven years or so and they’re bullet point number seven in Morgan Stanley’s “10 Surprises for 2016? outlook piece. A bigger risk, they add, than retail mutual fund redemptions. Who’d have thought, eh?
From banking research team (our emphasis): SWF redemptions may prove more material than retail mutual fund withdrawals – but mutual fund stress tests will be introduced due to concerns on corporate bond market liquidity driving cost creep, whilst FCA competition review will add to regulatory uncertainties for UK based asset managers...............................................Full Article: Source
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