LIQUIDATING TRUSTS: A NEW USE FOR AN ESTABLISHED STRUCTURE

2008 has seen unprecedented volatility in the financial markets and uncertainty for investors and investment managers. One way of helping to deal with redemption requests by investors may be to use a "liquidating trust". This type of trust can often be a solution to the issue of how to liquidate funds where the assets may be highly illiquid. Justin Appleyard and Richard Grasby discuss how a liquidating trust works in this scenario. This article was first published in Offshore Investment, February 2009, Issue 193 and on offshoreinvestment.com.