The ability of superannuation fund members to switch strategies with a day’s notice means that the growth of private capital cannot outpace the larger public markets without creating a problematic liquidity mismatch.
Liquidity refers to the ability to trade assets without friction. Shares in large companies are highly liquid, smaller companies less so, and unlisted companies have almost no liquidity because they have few shareholders and no market maker.
Source: https://www.afr.com/companies/financial-services/super-switching-a-handbrake-for-private-asset-domination-20250226-p5lfbc