Introduction
The COVID-19 pandemic has caused an economic downturn and unprecedented market disruptions. The drastic impact on financial markets and across almost all asset classes means that funds are directly affected in the face of volatile asset prices and a gloomy investment outlook.
While Singapore has passed the COVID-19 (Temporary Measures) Act 2020 (the “Act”) in double-quick time to provide some temporary relief in some aspects to certain businesses and types of contracts, these measures are not specifically directed at funds. As such, funds and fund managers still need to consider their obligations and responsibilities under their contracts with third parties, investment management agreements, constituent documents and their disclosures to investors. This update focuses on some considerations that fund managers should take into account in the current economic climate.
This update covers the following:
- How fund managers should handle potential changes to their funds’ investment strategy;
- Temporary relief provided by the Act for certain contractual obligations;
- The duties of fund managers during this period;
- Considerations when the valuation of funds may be affected by market volatility;
- How fund managers should deal with investors in light of the temporary measures instituted under the Act; and
- Other pertinent issues that fund managers should consider.
The Legal Update can be accessed:
legal_update-_a_fund_managers_guide_to_navigating_around_covid-19.pdf
For further information contact:
Claudia Teo
Partner & Head, Corporate and Financial Services
claudiateo@eversheds-harryelias.com
+65 6361 9845
Derick Ting
Partner
derickting@eversheds-harryelias.com
+65 6361 9363
Valerie Boh
Senior Associate
valerieboh@eversheds-harryelias.com
+65 6361 9324