From www.financialstandard.com.au: Nearly one in five pension funds may face liquidity risks as they increase allocations to private assets, a survey indicates.

The study, conducted by Ortec Finance, found that 18% of pension funds do not have sufficient liquidity to manage adverse scenarios, with APRA recently criticising superannuation funds for inadequate liquidity risk management.

While 62% of pension funds reported adequate liquidity for most situations, many acknowledged potential problems in extreme cases, particularly due to unfunded commitments associated with defined benefit schemes.