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Investors hit as liquidity pool dries up

Crisis affects both mainstream and esoteric funds

The United Nations said last month that a global water crisis had brought poverty and ill health to hundreds of millions of people. It warned that a lack of water was no longer a problem only for an outlying minority, but a central feature in global geopolitics.

The liquidity problems in the financial markets have also spread from outlying strategies, such as more esoteric hedge funds, to affect investors and fund managers across esoteric and mainstream asset classes - and the costs of investing are rising, according to research. Regulators are also paying attention to illiquid assets falling into the hands of retail investors.

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