Among the key differences in the design and operation of funds are: equity versus debt; leveraged versus long-only; level of liquidity; ease of redemption; actively-managed versus passive index-based; geographic scope; maturity horizon (with money market funds focusing on the short end and infrastructure funds orientated at the long end); use of derivative products for funding and asset allocation; type of funding (retail; asset-backed securitisations); and ownership structure (hedge funds, mutual funds, special purpose vehicles).
At the same time, asset quality metrics had been materially improved with the average NPL ratio declining to 2.7% which is again the best performance seen since the previous crisis. EU banks also enjoyed ample liquidity with the average Liquidity Coverage Ratio being at circa 150%, well above the regulatory minimum of 100%.