AIFMD FAQ

Guideline on Investor liquidity profile from Guidelines on reporting obligations:

Investor liquidity profile

120. AIFMs should divide the NAV of the AIF among the periods indicated depending on the shortest period within which the invested funds could be withdrawn or investors could receive redemption payments, as applicable. AIFMs should assume that they would impose gates where they have the power to do so but that they would not suspend withdrawals/redemptions and that there are no redemption fees. The total should equal 100%.

Explanation on Investor Liquidity Profile by the ESMA AIFMD Q&A:

Section III: Question 11 [last update 25 March 2014]:

How should AIFMs report the information on investor liquidity?

Answer 11:

AIFMs should divide the AIF’s NAV among the period buckets depending on the shortest period within which investors are entitled, under the fund documents, to withdraw invested funds or receive redemption payments, as applicable.

For example, an AIF has a NAV of €1,000,000 with two investors. According to the fund documents, investor A whose share of the NAV is €600,000 is entitled to withdraw 50% of its investment on a daily basis and 50% of its investments between 2 and 7 days. Investor B, whose share of the NAV is €400,000, is entitled to withdraw 60% of its investments between 31 and 90 days and 40% of its investment within 91 and 180 days.

The investor profile of the AIF will be the following: