Date: 5th October 2016
Author:
Type: In the news
EuroFinuse comments on the issue, "that some asset managers appear to be engaging in dubious – and potentially illegal – in-house trades to protect funds facing heavy redemptions from having to sell assets at fire-sale prices".
Internal cross-trading between funds however, is not illegal. Guillaume Prache, Managing Director of EuroFinuse states in the Financial Times that it is "not always wrong to sell to funds within the same group. As long as it’s favourable to the interest of investors in the buying fund then it’s fine...” However, when it’s detrimental to investors "it should be forbidden.”
Read the full article here. (Source: Financial Times)