Strengthening operational resilience for investment funds

Global uncertainty is becoming the new operating reality

Market volatility is no longer an occasional disruption. It has become a more persistent feature of the global investment landscape, shaped by geopolitical tensions, shifting trade policies, inflation and volatile capital flows. For fund managers, this redefines resilience. Performance remains important, but investors increasingly ask whether a fund can keep operating effectively under stress – through liquidity pressure, valuation complexity, cybersecurity risk and evolving regulation.

Singapore's fund industry has proven this resilience in practice. At the 2025 IMAS Regulatory Forum, MAS noted that most Singapore-based fund managers maintained orderly operations, met margin calls promptly and managed redemptions effectively during recent market stress.

The takeaway is clear: resilience should not be treated only as a response to disruption. It is becoming a long-term operating capability that underpins investor confidence, regulatory readiness and continuity through changing conditions.

Operating strength matters as much as performance

A strong fund is not defined by portfolio positioning alone. It also depends on the quality of governance, controls, data, reporting and service provider coordination that hold up under stress.

This is increasingly reflected in Singapore’s regulatory direction. MAS has proposed updates to its Liquidity Risk Management Guidelines for fund management companies, focused on strengthening governance around liquidity management tools, aligning portfolio liquidity with redemption terms, and improving preparedness for future periods of market stress. The proposals also seek to align Singapore’s framework with international standards and strengthen investor protection. For fund managers, liquidity planning is no longer just a compliance matter; it is central to orderly operations, fair treatment of investors and reduced pressure when redemptions rise.

Valuation governance is also attracting greater attention, particularly as private market allocations and less liquid strategies continue to grow. MAS’ 2026 information paper on valuation practices sets out supervisory expectations around governance structures, valuation frameworks, policies, and controls for fund management companies.

The operating model behind the fund is equally important. Managers need structures, systems and service provider arrangements that support continuity across fund accounting, investor reporting, compliance and governance. Fund structures can support resilience when they provide clear governance, operational flexibility and effective segregation of assets, but strength ultimately comes down to how effectively the fund is governed and operated in practice.

Four operational priorities for fund managers

Uncertainty cannot be eliminated, but readiness can be built. Four priorities deserve review before pressure builds.

Liquidity readiness

Market stress quickly exposes mismatches between underlying asset liquidity and redemption expectations. Managers should review whether redemption terms remain aligned with the portfolio’s liquidity profile, whether investor concentration could create additional pressure, and whether escalation procedures are clearly understood.

Regular stress testing and active monitoring let firms prepare for multiple scenarios - not just react when conditions deteriorate.

NAV and valuation governance

NAV reliability underpins investor confidence, and grows harder to maintain as pricing inputs become less observable or portfolios shift toward private and illiquid assets.

Fund managers should confirm valuation policies are current, pricing methods are applied consistently across similar assets, and judgement-based pricing adjustments are backed by clear rationale and an audit trail. Independent review and clear pricing governance can help reduce uncertainty in conversations with investors, auditors and regulators.

Compliance and investor reporting

Uncertainty raises the bar on compliance and communication. Risk-based AML/KYC controls, continuous monitoring and timely investor reporting help firms meet shifting regulatory expectations while maintaining trust.

Investors also expect clearer, faster updates on performance, liquidity and risk positioning when markets move quickly. Consistency in communication is what sustains confidence during volatile periods.

Operating model resilience

Continuity across fund administration, reporting and oversight is now a resilience test in itself. Automated workflows, strong data governance and robust cybersecurity reduce operational risk and improve response speed. Flexible structures, backed by clear governance and defined responsibilities, help managers adapt as regulations, strategies and investor expectations evolve.

Rather than responding to change after it occurs, firms that invest early in these operational capabilities will be better positioned to adapt as market conditions continue to evolve.

How Acclime can help

Acclime supports fund managers across fund establishment, governance, compliance and ongoing administration throughout the fund lifecycle in Singapore and across Asia-Pacific. Our teams work with clients to strengthen operational frameworks, support regulatory alignment and improve resilient fund operations in an increasingly complex market environment.

Looking to strengthen the resilience of your fund operating model? Contact Acclime's fund specialists to discuss your governance, compliance and operational priorities.

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