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Introduction (partial) "The asset management sector has experienced strong growth in assets under management (AUM) over the past decade. Global AUM rose from $50 trillion in 2004 to $76 trillion in 2014, or 40% of global financial system assets. This includes $31 trillion invested in open-ended mutual funds. The trend towards greater market-based intermediation through asset management entities should enhance the efficiency, and contribute to the overall resilience, of the financial system by providing new sources of credit and investment, promoting international flows of capital, reducing reliance on bank funding and increasing competition in the financial system. Moreover, evidence suggests that most open-ended funds have been generally resilient. They have not created financial stability concerns in recent periods of stress and heightened volatility, with the exception of some money market funds (MMFs). At the same time, it is important to ensure that any financial stability risks associated with the asset management sector are properly understood and addressed. For example, growth in the asset management sector has been accompanied by increased investment in particular asset classes, including some less actively traded markets, through open-ended funds that offer daily redemptions to their unit holders. If market prices were to drop sharply and liquidity were to deteriorate, investors in less liquid asset classes through open-ended funds could experience greater and more sudden losses than expected, which could result in a significant number of fund investors attempting to exit these asset classes at the same time. The action of these fund investors could amplify downward repricing of assets and increase the severity of liquidity strains in the affected asset classes. It could also increase the potential for contagion across asset classes …"

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