Spanish reg' rebuffs Covid-19 fund liquidity issues

On the 07/28/20 at 7:32AM


Adrien Paredes-Vanheule

Spanish financial watchdog CNMV on Monday published a study on the state of the intermediation of non-banking finance in the country. The regulator took the opportunity to dismiss again any liquidity issue possibly encountered by Spanish funds at the peak of the Covid-19 market crisis.

Hence, from the beginning of March 2020 to the end of May 2020, net outflows amounted to just over €6bn, or just above 2% of the Spanish funds' total assets, said CNMV. The watchdog added that local asset managers were able to cope with that figure without any incident. Absolute return and bond funds were the most impacted products.

The Spanish regulator underlined that a 'small number' of funds had to deal with outflows exceeding 20% of their net assets. But said CNMV, the only real incident identified was the suspension of the net asset value of the Luxembourg-domiciled Exane Integrale fund in March having prompted redemptions in a Spanish fund of funds, equivalent to 7.1% of the investment vehicle assets.