The ExIT Allocation To Illiquid Assets

Even though pension funds are pretty well funded right now, the prospect of low bond yields lasting for years to come (even if not at today’s ultra-low rates) is a challenge that they need to be prepared for. Ignoring the problem could mean falling behind and struggling to keep funding ratios high, but risking principal while chasing yields with higher risk products could have the same result.

“One of the biggest concerns about incorporating alternative investments in a portfolio is illiquidity, though the opportunity to invest in illiquid assets often translates into the very potential for higher returns and diversification that many investors seek,” HewittEK in a recent...