Another thing I want to point out, because I just noticed it. The recent years' yields on bond funds has been slightly higher than equity (stock) mutual funds, but with only a very small fraction of the volatility:
http://news.morningstar.com/fundReturns/FundReturns.html?category=$FOCA$HY
I'm not sure what the current thinking among fiduciaries is on diversified high grade bond funds is, but the statistical distribution of those long-term returns looks as if a variety of them for a portion of the reserves would have a far better risk-to-return ratio than sticking with certificates of deposit and treasury securities (which currently pay negative real interest rates, i.e., less than inflation) as we have been.
This mailing list is not a suitable venue for a detailed discussion about investment strategy. There are a lot of different things you have to take into account when choosing investments. If the foundation wants to investigate other investment options they need to get a professional investment consultant (if they don't have one already) who will go through their specific needs and appetites and advise on what investments are suitable for them. We can't do that in a useful way on a mailing list. On Dec 27, 2012 10:08 PM, "James Salsman" jsalsman@gmail.com wrote:
Another thing I want to point out, because I just noticed it. The recent years' yields on bond funds has been slightly higher than equity (stock) mutual funds, but with only a very small fraction of the volatility:
http://news.morningstar.com/fundReturns/FundReturns.html?category=$FOCA$HY
I'm not sure what the current thinking among fiduciaries is on diversified high grade bond funds is, but the statistical distribution of those long-term returns looks as if a variety of them for a portion of the reserves would have a far better risk-to-return ratio than sticking with certificates of deposit and treasury securities (which currently pay negative real interest rates, i.e., less than inflation) as we have been.
Wikimedia-l mailing list Wikimedia-l@lists.wikimedia.org Unsubscribe: https://lists.wikimedia.org/mailman/listinfo/wikimedia-l
Thomas is right. [And yes, bonds are on the radar.] SJ
On Thu, Dec 27, 2012 at 6:28 PM, Thomas Dalton thomas.dalton@gmail.comwrote:
This mailing list is not a suitable venue for a detailed discussion about investment strategy. There are a lot of different things you have to take into account when choosing investments. If the foundation wants to investigate other investment options they need to get a professional investment consultant (if they don't have one already) who will go through their specific needs and appetites and advise on what investments are suitable for them. We can't do that in a useful way on a mailing list. On Dec 27, 2012 10:08 PM, "James Salsman" jsalsman@gmail.com wrote:
Another thing I want to point out, because I just noticed it. The recent years' yields on bond funds has been slightly higher than equity (stock) mutual funds, but with only a very small fraction of the volatility:
http://news.morningstar.com/fundReturns/FundReturns.html?category=$FOCA$HY
I'm not sure what the current thinking among fiduciaries is on diversified high grade bond funds is, but the statistical distribution of those long-term returns looks as if a variety of them for a portion of the reserves would have a far better risk-to-return ratio than sticking with certificates of deposit and treasury securities (which currently pay negative real interest rates, i.e., less than inflation) as we have been.
Wikimedia-l mailing list Wikimedia-l@lists.wikimedia.org Unsubscribe: https://lists.wikimedia.org/mailman/listinfo/wikimedia-l
Wikimedia-l mailing list Wikimedia-l@lists.wikimedia.org Unsubscribe: https://lists.wikimedia.org/mailman/listinfo/wikimedia-l
wikimedia-l@lists.wikimedia.org