Impact of COVID-19 on fundraising

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By Ted Liu

The impact of social distancing being mandated to contain COVID-19 is devesting in many business sectors. How does it impact on fundraising?

To illustrate the impact, we have selected one particular issuer with several retail funds. To emphasize the impact further, we deliberately choose the issuer that uses its own salesforce, instead of the usual industry practice utilizing exempt market dealers (EMDs).

The fallout for this issuer is bad (see chart) and equally bad is for those who are making a living connecting with investors.

disclaimer – the illustration is on one particular issuer only and it should be cautioned on drawing generalization on the whole industry.