Liquidity design and redemption management are the most common barriers to launching or scaling evergreen products, cited by 52 percent of respondents. Education across the value chain is also a concern: only two in five fund managers believe intermediaries have a strong understanding of liquidity management tools in high-redemption scenarios, while around one-third of distributors believe their clients understand them.
Execution is proving more demanding than many firms anticipated. Almost half (48 percent) say they understood the issues but found implementation took longer than expected, while 41 percent believe the market underestimates the cost and operational burden of servicing a much larger investor base at scale.