Daily valuation and trading issues associated with
illiquid asset classes do not outweigh their potential performance benefits within DC plans, an analysis finds.
After taking over the reins in 1987, David Swensen, the chief investment officer of Yale Endowment, moved aggressively into non-traditional and often
illiquid asset classes like foreign equity, absolute return, real assets and private equity.
Ratings agencies appear to favour the expansion of funding sources beyond short - term loans, such as commercial paper, for pension funds that are increasingly investing in
illiquid asset classes.
Better for investing in
illiquid asset classes.
«With Harbor, we could see things like funds tokenizing LP interest for
illiquid asset classes, marrying the liquidity of markets with the illiquidity of the underlying assets owned by the fund.
Publicly traded property stocks provide exposure to real estate,
an illiquid asset class, without sacrificing the liquidity benefits of listed equities.
For
an illiquid asset class such as art, many individual assets do not trade within commonly used return measurement intervals (such as a year).
Liquidity risk: Real estate is a relatively
illiquid asset class.
Publicly traded property stocks provide exposure to real estate,
an illiquid asset class, without sacrificing the liquidity benefits of listed equities.
Not exact matches
One theory, outlined in a Morningstar article, is that over the years REITs evolved from a small,
illiquid and neglected to a mainstream and easility accessible
asset class.
Tellingly, even though emerging art has been discounted as an
asset class (astoundingly, by Art Basel's director Marc Spiegler, who recently said of it: «When it goes
illiquid, it goes totally
illiquid»), I noticed several hopefuls carrying a list of the young artists / collectives tapped for the forthcoming Whitney Biennial, chief among them Sky Hopinka, Park McArthur, Torey Thornton, Puppies Puppies and Porpentine Charity Heartscape.