I’ve got two fun reads for you this weekend…and one bear. I’ll start with the fun.
The first is RBC Dexia’s October edition of “Perspectives”. It’s an interesting read that…you guessed it…offers experts’ perspectives on a variety of topics related to finance and asset management. And this edition features such great minds as…Gordon Clark and Ashby Monk on the topic of SWFs (page 8). Now wait, before you skip it, it also has some actual experts, such as Josh Lerner (page 10).
The second is OMFIF’s October Bulletin. As usual, there’s plenty of absorbing stuff to ogle in these things, but I’d like to direct your attention in particular to the short article by Andrew Rozanov (page 11). He makes some really compelling observations about SWFs that I think are worth highlighting. Here’s a clip:
“The equivalent of the ‘Impossible Trinity’ in the SWF world may contain the three typical policy objectives of achieving stabilisation, promoting long-term saving and supporting economic development. A state-owned fund may be successful in pursuing two, but rarely, if ever, all three of the objectives.”
And now for the bear: Aaron Drew of the Guardians of the NZSF has a white paper entitled “Modelling of asset returns and the economy for the 2010 Reference Portfolio Review” (h/t David Chaplin). The paper is actually quite interesting (and much easier to read than I’m suggesting). Here’s an example of what you’ll learn if you sit down to read it:
“…the modelling framework used to generate portfolios, sensitivity analyses and performance metrics of interest for the NZSF‟s 2010 Reference Portfolio Review…” and “…the risk and return trade-offs facing the Guardians of New Zealand Superannuation in its core risk profile choice.”
Right?! What else would you want to do on your weekend than learn about this stuff? Good times ahead. Enjoy it!