Managing Liquidity Risk in Open-Ended Investment Funds: A Regulatory and Strategic Analysis.

This thesis delves into the intricate domain of managing liquidity risk within open-ended investment funds, with a specific focus on the regulatory and strategic landscape in France. Liquidity, defined as the ease with which assets can be bought or sold in the market without affecting their price, is crucial for the seamless operation of investment funds. Liquidity risk arises when a fund is unable to meet redemption requests without significantly impacting its asset prices or incurring substantial costs. Open-ended funds are particularly susceptible to liquidity risk, especially during periods of market stress. This thesis examines the current regulatory framework in France. This research also explores the implementation of stress testing as a vital tool for assessing the resilience of funds under adverse market conditions. My interest in this topic is connected to my internship experience at a French investment fund.