As the coronavirus continues to affect markets worldwide, many groups are conducting internal reviews and risk-assessments. In the investment management world, here are the top 4 questions fund boards should be asking their Advisers:
- Has the Adviser had to implement its business continuity plan? If so, have any issues been uncovered? If not, is there increased testing to ensure that it can continue business operations if employees must work remotely for a period of time?
- How has the Fund’s liquidity risk management program held up in the recent market volatility? Have there been any issues meeting shareholder redemptions?
- Have there been any issues with the Fund’s third-party services providers, particular with respect to calculating the Fund’s NAV each day? Have you had recent discussions with them about implementation of their business continuity plans and are you comfortable they can continue providing services to the Fund?
- With the recent market volatility has there been any valuation issues?
