It’s the weekend. And that means I’ve got some news and research for your reading enjoyment. First, the news:
- 010100101010: The launch of the ‘code free’ movement in finance will help professionals master their data and make better decisions. Awesome.
- Emerging Alternatives: Indian private equity seems to be gaining serious traction with institutional investors, as OTPP and ADIA are participating in seeding a new fund.
- Returns: The Oregon Investment Council delivers for Oregon schools.
- New SWFs: The Canadian province of Saskatchewan may be considering a new SWF.
- Risky: How are long-term investors thinking about water? Some thoughts. - AoG: Sign up for the daily brief here.
Second, I’ve got some research for you:
- Asset Allocation: Zvi Bodie and Marie Briere have a new paper entitled, "Optimal Asset Allocation for Sovereign Wealth Funds: Theory and Practice". Here’s a blurb: "This paper addresses management of sovereign wealth from the perspective of the theory of contingent claims. Starting with the sovereign’s balance sheet, we frame sovereign fund management as an asset-liability management (ALM) problem, covering all public entities and taking explicit account of all sources of risks affecting government resources and expenditures. Real-life SWFs asset allocations differ strongly from theoretical ones. Financial management of the sovereign balance sheet is hampered by a lack of aggregate data, which compromises the coordination of sovereign wealth management with fiscal policy, monetary policy and public debt management. In this framework, we suggest institutional arrangements that could overcome this obstacle and enable efficient coordination."
- Infrastructure: The Milken Institute released a paper in April that I just reread this week on catalyzing private investment in infrastructure. It’s well worth a look, as it’s basically a review of a conversation among a variety of long-term investors and policy makers.
Have a nice weekend!
