CFA Socities Australia Logo
  • CFA Institute
  • Subscribe
  • Contact Us
  • Member Login
  • Home
  • Study
    • CFA Program
    • CIPM Program
    • CFA Institute Certificate in ESG Investing
    • Investment Foundations Program
    • Society Candidate Education
  • Members
    • Become a Society Member
    • Member Resources
    • Volunteering
    • 2022 Investor’s Trust Survey
  • Candidates
    • Society Candidate Membership
    • How to Become a CFA Charterholder
    • Candidate Resources
    • Investment Voices
  • Events
    • 2023 International Women’s Day
    • 2022 International Women’s Day
    • 2022 Australian Investment Conference
    • Commodities Series
    • ESG Series
    • Inflation Series
    • Chat With Series
    • Analytical Curious You Series
    • Full Event List
  • Careers
    • Careers in Finance
    • Career Resources
    • Investment Voices
  • Industry & Employers
    • Why Hire a Charterholder?
    • Partner with Us
    • Partnership Opportunities
    • Ethics Decision-Making Workshops
    • CFA Institute Certificate in ESG Investing
    • Future of Work in Investment Management
    • 2022 Investor’s Trust Survey
  • Insights
    • Research & Analysis
    • Ethics, Codes & Standards
    • Advocacy
    • Media
  • About
    • CFA Societies Australia
    • CFA Society Melbourne
    • CFA Society Perth
    • CFA Society Sydney
    • CFA Brisbane Chapter
    • Contact us
Illiquid Assets
Illiquid Assets

Exploring Portfolios with Illiquid Assets

The management of illiquid assets in a portfolio is a global problem in wealth management and management of pension funds. With no set of prescriptive or (as yet) formalised standards, the responsibility is placed on super fund trustees to address the questions such as:

  • How do you define acceptable portfolio quality?
  • What is a tolerable level of suspected stale pricing and unit price ‘gapping’?
    (‘suspected’ because one can only estimate the market movement in unlisted assets)
  • When does the performance impact of providing liquidity and restoring portfolio quality become
    unreasonable?

 

The core purpose of the material and tools presented here is to stimulate dialogue, discussion and further research into the pressures placed on super fund trustees. Our aim is to provide a set of resources that assist funds explore some of the challenges associated with allocating to illiquid assets.

The resources are made available to:

  • Be used to frame and illustrate important trustee discussions in an interactive case study structure
  • Be extended upon and incorporated into existing risk frameworks
  • Provide a baseline framework to establish reference standards for Australian super funds

 

Who is this work for?

Investment Managers, Risk and Governance Officers, Fund Trustees and Regulators.

 

Case Studies

Illiquid Asset Case Study Exploring single sector options

Case Study 1:
Exploring Single Sector Options

Download Presentation >
Illiquid Asset Case Study Exploring Liquid Proxies

Case Study 2:
Exploring Liquid Proxies

Download Presentation >
Illiquid Asset Case Study Exploring Multi Sector Options

Case Study 3:
Exploring Multi-Sector Options

Download Presentation >

Supporting Tools

Model 1: Exploring Single Sector Options

Download Tool >

Model 2: Exploring Liquid Proxies

Download Tool >

Model 3: Exploring Multi-Sector Options

Download Tool >

Frequently Asked Questions >

 

Important Disclaimer

These presentation and supporting research reflect the views of the authors and do not reflect the views of the Conexus Institute and the CFA Societies Australia.
These presentation and supporting research do not constitute financial advice and do not present normative recommendations for the management of funds with illiquid assets. The work is not prescriptive; it is best complemented by other insights, both quantitative and qualitative. Our models provide an element of “baselining”: they can be customized to incorporate assumptions.

Study

  1. CFA Program
  2. CIPM Program
  3. Society Candidate Education
  4. CFA Institute Certificate in ESG Investing

Resources

  1. Member Resources
  2. Candidate Resources
  3. Career Resources

Industry & Employers

  1. Why Hire a Charterholder?
  2. Partner with Us
  3. Research & Analysis
  4. CFA Institute Certificate in ESG Investing

Your Local Society

  1. CFA Society Melbourne
  2. CFA Society Perth
  3. CFA Society Sydney
  4. CFA Brisbane Chapter

© 2023 CFA Institute. All Rights Reserved | Terms & Conditions | Privacy Policy

  • Linkdin
  • Facebook
  • Twitter
  • Youtube
  • Instagram

We are using cookies to give you the best experience on our website.

You can find out more about which cookies we are using or switch them off in settings.

Powered by  GDPR Cookie Compliance
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.

Strictly Necessary Cookies

Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.

If you disable this cookie, we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again.

3rd Party Cookies

This website uses Google Analytics to collect anonymous information such as the number of visitors to the site, and the most popular pages.

Keeping this cookie enabled helps us to improve our website.

Please enable Strictly Necessary Cookies first so that we can save your preferences!