Many Super funds are well aware if the dangers of illiquid assets in supposedly liquid funds from their experience with the GAM Absolute Return Bond Fund last year. FCA-regulated GAM had over 20% of client assets in opaque and illiquid bonds created by Australian financier Lex Greensill, many linked to projects of Greensill Capital shareholder Sanjeev Gupta and his GFG companies.
The fund suspended dealings and subsequently announced its liquidation in August 2018 and the investment director was sacked for gross misconduct in February 2019.
Investors, including several Super funds, are waiting for the final 20% of their monies to be returned.