Armit Bhambra, head of iShares retirement at BlackRock
Liquidity in a pension fund context can mean a number of things. As long-term investors, pension funds can harvest the illiquidity premia by investing in private markets, which they have been doing increasingly over the past 10 years.1 On the other hand, pension funds are required to meet their liabilities and so need enough liquidity to ensure the payment of benefits to members.
Sustainable investing was once viewed as a trade-off between value and ‘values’. Yet today, it’s something investors can no longer afford to ignore.
The balancing act of locking assets up whilst retaining enough liquidity to meet member benefits, if done correctly, can improve the returns generated from a scheme’s asset allocation