GSJBW Managed Funds follow suit in redemption freeze
Standard & Poor’s (S&P) has placed three Goldman Sachs JBWere Managed Funds (GSJBW) multi-strategy funds ‘on hold’ following a temporary redemption and application freeze.
S&P Fund Services analyst Simon Scott said “the current desire for liquidity by investors has resulted in redemption requests being made upon the underlying hedge funds offering the greatest liquidity”.
“Rather than selling high quality assets bought with longer-term investment timeframes in mind in the current market, these funds have proceeded to place restrictions on redemptions, detrimentally altering the liquidity profile of the multi-strategy funds in the process,” Scott said.
S&P said the combined effect of redemption restrictions, increased hedging costs from movement in the Australian dollar and the inability to draw on previously established credit facilities means many managers are finding it increasingly difficult to manage their immediate liquidity needs. However, the recent demand by investors for greater liquidity, regardless of the risk profile of the underlying funds, has resulted in an increased liquidity mismatch across the country.
S&P said there is currently no timeframe for the temporary suspension.
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