Pension funds have recently poured money into alternative investments such as infrastructure projects and private equity to escape low yields on government bonds. But such investments are often illiquid, meaning pension funds won't be able to move them quickly into cash when needed. Pablo Antolin, chief economist for the private pensions division of the OECD's Financial Affairs Department, said there was nothing wrong with calls now for more regulatory flexibility to allow defined contribution schemes to invest in illiquid areas. But we also have to be very careful because liquidity issues are very important in investment strategy management. Antolin also warned that the level of due diligence required for alternative investments may be beyond the capabilities of many smaller funds, and small and mid-sized pension funds may not be able to evaluate such investments well.