Here’s a sign of the times: Money managers are hastening to warn investors about the potential financial impact of a pandemic.
More than 40 asset managers, including
“Unexpected local, regional or global events and their aftermath, such as war; acts of terrorism; financial, political or social disruptions; natural, environmental or man-made disasters; the spread of infectious illnesses or other public health issues; recessions and depressions; or other tragedies, catastrophes and events could have a significant impact on the Fund and its investments,” the Catalyst Funds said in a filing earlier today.
While several firms took this step as early as February, the trend accelerated on March 13, a day after the S&P 500 Index fell about 9.5%. Wasatch Advisors, a Salt Lake City firm with about $19.9 billion under management at the end of February, made its filing on March 24.
The SEC has been contacting fund companies on the issue, said Steve Rung, a Wasatch spokesman. The agency prefers that fund managers update principal risk disclosures in real time, he said.
“This is something that occurred that probably most people hadn’t anticipated in the past,” Rung said in a telephone interview. “Now we are saying this is a risk that should be enumerated because now we know about it.”
(Adds example of mutual fund risk factor in third paragraph)
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