I’ve written various posts here about the conduct of the New Zealand Superannuation Fund when Adrian Orr was CEO. Their investment returns have been no better than one might have hoped for given the amount of risk they (force taxpayers’ collectively to) take. Formally, they will argue that their strategies are risky enough that one can really only judge based on 20 year runs of performance (the Fund is only 15 years old). But they talk themselves up endlessly, making dubious claims about their contribution, and playing politics more often than sound economics. We had the big call last year to reduce their carbon exposures, allegedly on the grounds that risk-return considerations didn’t support such investments any longer, but then they implemented the decision in a way that makes it impossible to see whether this big active management call was well-judged on financial grounds, or not. As I…
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There are very interesting testimonies/papers there. I just read this one from Austrian school economist – Peter Klein. He says the issue is not of reforming Fed, but why have it at all in the first place?
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