A liquidity warning has been issued by the OECD for pension funds, which have reached a size of approximately 60 trillion dollars as of 2021. The crisis in UK pension funds in 2021 is seen as a warning, urging funds to be “extremely careful” when investing in risky and illiquid assets for returns.
The Organization for Economic Cooperation and Development said that the rise in interest rates and the decline in global stock markets have changed the outlook for pension funds, saying they need to be “extremely cautious” about liquidity risks.
According to the news of Hilal Sarı from the newspaper Ekonomim, a liquidity warning has been received from the OECD Financial Aff airs Division, the private pension unit of the OECD, for pension funds reaching a size of approximately 60 trillion dollars as of 2021. The crisis in UK pension funds in 2021 is seen as a warning, urging funds to be “extremely careful” when investing in risky and illiquid assets for returns.
According to a report by the Thinking Ahead Institute, global pension fund assets, which continue to grow in 2021, have almost doubled in the last 10 years to reach $56.6 trillion. The report, which examines 22 pension fund markets, states that only 7 markets – Australia, Canada, Japan, Netherlands, Switzerland, the UK and the USA – hold more than $52 trillion in assets. Additional pension fund markets outside of these 22 markets are estimated to be between $3 and $6 trillion.
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