Liquidity management tools (LMTs)

Roles that need it

• Investment Risk Analyst
• Liquidity Risk Analyst
• Fund Accountant
• Regulatory Change Analyst
• Investment Product Specialist

Skills it belongs to

• Fund regulation and structures (UCITS, AIFMD, US 1940 Act)
• Regulatory change impact assessment

Related concepts

• Swing pricingSwing pricing is a liquidity management tool that adjusts a fund's net asset value up on days of net subscriptions, or down on days of net redemptions, by a swing factor reflecting trading costs. The investors who trade bear the cost of their dealing, which protects those who stay. Full swing applies every day; partial swing only above a threshold.
• Anti-dilution levyAn anti-dilution levy (ADL) is a charge added to the dealing price paid by subscribing or redeeming investors, to cover the trading costs their dealing causes the fund. It goes to the fund, protecting remaining investors, and is one of the liquidity management tools listed in the revised UCITS and AIFMD (Alternative Investment Fund Managers Directive) rules.
• UCITS (Undertakings for collective investment in transferable securities)A UCITS is an open-ended investment fund authorised under Directive 2009/65/EC that invests in liquid financial assets under diversification and leverage limits. A UCITS authorised in one member state can be marketed to retail investors across the EU with a passport, and it must appoint a depositary.
• AIFMD (Alternative Investment Fund Managers Directive)The Alternative Investment Fund Managers Directive (AIFMD), Directive 2011/61/EU, regulates managers of funds that are not UCITS, such as hedge, private equity, real estate and infrastructure funds. It sets authorisation, capital, depositary, reporting and marketing rules; Directive (EU) 2024/927 (AIFMD II) adds loan origination and liquidity rules.
• Money market fund (MMF)A money market fund (MMF) invests in short-term debt such as treasury bills, commercial paper and deposits, aiming to preserve capital and offer daily liquidity. The EU Money Market Funds Regulation defines constant NAV, low volatility NAV and variable NAV types, with liquidity, maturity and stress test rules.

Sources

• Directive (EU) 2024/927 (amending AIFMD and UCITS), EUR-Lex (external site) accessed 31 Oct 2026

Updated 31 Oct 2026.