Pooled DC schemes could use their scale to enhance their negotiating position when agreeing fees for
illiquid assets, such as infrastructure, as well as develop the internal expertise to invest in alternatives directly.
Further, the data shows institutions increasingly embrace
illiquid assets, including private credit and real assets, as a way to meet their long-dated liabilities.
A common vehicle for today's owners of
illiquid assets is a limited liability company or some similar arrangement.
It is probable that the more conscientious an individual is and the more financial knowledge she or he has, the more likely the individual will be to invest in
illiquid assets.
ABSTRACT The "wealthy hand-to-mouth" are households that hold little or no liquid wealth, whether in cash or in checking or savings accounts, despite owning sizable amounts of
illiquid assets (assets that carry a transaction cost, such as housing or retirement accounts).
SecondMarket, an online marketplace for
illiquid assets, signed a 50,000 s/f lease at the property in 2011.
They've been scarred by their experiences with
illiquid assets over the past couple of years.
At best, they offer liquidity to a portfolio which may otherwise be tied up in relatively
illiquid assets such as property.
However, Al-Rashoud confirmed that banks should be careful in financing mega projects otherwise they would end up with a lot of
illiquid assets.
Rebalancing is rarely an option for
illiquid asset classes such as private equity, but using "vintage accounts" to hold
illiquid assets yields tax compliance savings that are similar to those for side pockets.
ILLIQUID ASSETS TO TOTAL ASSETS: The ratio of
illiquid assets to total assets should be at least 20 per cent.
associated with converting
illiquid assets into consumption.
