It is for many investors a consequence than an objective in itself

Among the main priorities and objectives of the investors (see table below), the liquidity of the investment is in last place and has even lost two or three ranks between 2006 and 2007, according to the survey conducted by Invesco institutional 115 by Europeans. It is located behind the performance, the level of risk and the investment horizon. It is for many investors a consequence than an objective in itself. "Liquidity risk is especially the case of the Manager, the investor tend him, to apply that it is not a real concern, confirmed Franck Dixmier, Deputy Director in charge of investments in Allianz Global Investors France. Overall, investors appear not ready to accept their investments on the classes of traditional assets (credit...) of limitations on the liquidity of their investments, such as those that can be known in the world of alternative management.

Yet, according to some, the management methods of the constraints of liquidity in force in the world of "hedge funds" could be adapted to traditional operators operating on classes of assets or expertise exposed to variations of liquidity (small values...). Examples "The systematic creation of incentives notices (rights of output if the client wants to retrieve her money immediately) acquired the UCITS or imperatives (incompressible minimum period), or the rating of a number of savings instruments collective (UCITS products structured actions with very low float) on platforms such as the one developed by the Scandinavian Alternativa", puts forward Xavier Lépine.

"Caution", "experience"...

Currently, some "hedge funds" reduce the level of commissions for customers who are committed to stay in their Fund for a minimum period. A way for them to save time and wait for the return to more favourable market conditions. Traditional societies are not yet there. They always have communication weapon to try to convince their clients do not get out of their funds. The objective is to reassure them without appearing for as reckless and blind to the dangers which they would be charged. Environment encourages true to the "caution", but given their "experience", another recurring key word in their rationale, managers will be able to enter the "opportunities" that will undoubtedly arise.

The managers then revealed their young diagrams and calculations, to demonstrate that an investor who would miss only five to ten best sessions of the year would see its performance decline steeply. Exit pop-ups and massive for some customers also have an impact on the performance of other subscribers who choose to stay. Coexistence in a Fund of investors to the liquidity needs and heterogeneous investment horizons is not without effect on performance that each withdraw (read above).

A series of innovations

"Just as there are business continuity plans, it would be necessary to implement in plans for continuity of liquidity funds, which guarantee that it will be ensured without interruption and does not penalize the performance, even in circumstances of crisis, says Jean-François Boulier, Managing Director of Aviva asset management." Unlike banks, there is no lender of liquidity last spring for management companies, which must be organized to deal with this lack. "This is the reason why, for some suggest that it may be wise that UCITS managers have access to a source of ultimate refinancing, particularly with the France Bank. "When they cannot honour all requests for redemptions of their customers, they could leave pension some of their assets to the Institute of issue and get in return the money to meet their commitments, says Xavier Lépine, President and CEO of UFG Alteram.". Thus they would have time to dispose of their assets, satisfactory liquidity conditions.

For asset managers, the need to better manage their liquidity risk is likely to generate a series of innovations, including some at the initiative of the investment banks. Examples "The creation of a genuine market for the management of the gap between liquid and less liquid securities, or a circuit of exchanges and loans of securities between management companies", said Jean-François Boulier. Organized stock markets could also take the opportunity of this crisis to develop further on the bond segments.