Pension funds have always grappled with the problem of ensuring the assets they hold not only maximise returns but also can be bought and sold at a price and time that suits them.
John Dewey, managing director in the client solutions team at BlackRock, said: “Liquidity management has become a big theme and there are two sides pushing it up the agenda. The first is that asset classes that were historically inexpensive and easy to trade are no longer cheap.” He said the second aspect is the prolonged low interest rate environment that is pushing pension funds to search for higher returns in less liquid strategies.
