The last two years - with the advent of the credit crisis in August 2007 when the US housing market began to correct in a widespread manner - has seen equity markets go through regular periods of severely reduced liquidity.
The main beneficiaries of this phenomena in the collective investment market have been money market funds, absolute return strategies and the exchange-traded sector. Money market funds, particularly given the nervousness about bank deposits, understandably attracted considerable assets looking for the so-called safe haven of cash. For some advisers and their clients, these funds brought a new set of risks because they did not take the time to 'look under the bonnet' and really understand what assets money market funds held. In some cases, they were attracted by the return and did not fo...
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