[Wikimedia-l] bond funds? (was Re: Annual Audit of the Wikimedia Foundation)

James Salsman jsalsman at gmail.com
Thu Dec 27 22:08:08 UTC 2012

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:


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.

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