Collidr: IFAs, Probe Fund Managers on Liquidity

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The European Central Bank’s latest report on the total net assets of funds predominantly invested in less liquid assets paints a worrying picture. According to the report, this figure has reached nearly €1.2tn (over £1tn) in 2021. Many investors, both institutional and individual, are now exposed to a significant risk in the form of these investments.

Symon Stickney, CEO of digital asset manager Collidr, is particularly concerned. He believes the recent collapse of asset manager First Republic is a sign that investors should be paying close attention to these fund assets and their underlying context.

“We’re starting to see an increase in the amount of funds being invested in less liquid assets,” he said in an interview. “These funds are often much more difficult to manage, and they don’t offer the same level of stability as more liquid investments. This means that if the markets take a sudden turn, or if there’s a crash, then those who are invested in these funds could find themselves in a vulnerable position.”

For Stickney, it is essential that investors be given the opportunity to closely monitor and manage their investments. “It’s important that investors understand exactly what they’re investing in and how those investments will be affected by market changes,” he said. “They need to be able to make informed decisions, and they should be able to have the necessary tools to do so.”

This means that investors should have access to the data, analytics, and insights they need to get a fuller picture of their investments and make wiser decisions. With access to this kind of information, investors can understand the risks associated with their investments and make better decisions about where to invest their capital.

Collidr is taking steps to help investors by providing them with the data and analytics they need to make more informed investment decisions. The company is also developing easy-to-use tools that make it easier for investors to assess their investments’ risks and potential return.

Ultimately, investors should take responsibility for doing their own research and understanding the context of their investments. This can be difficult, but it is an important part of taking measures to ensure a safe return on investments. Stickney believes that making sure investors have access to the right information is key. “We need to give investors the tools they need to make sense of their investments,” he said. “It’s not just about profits – it’s also about making sure they’re not exposed to bigger risks than they’re prepared to accept.”

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Collidr: IFAs, Probe Fund Managers on Liquidity