Monk: Granular cash flow modeling allows pension funds to hold less cash
Ashby Monk · Ashby Monk – Innovation in Institutional Portfolios (Capital Allocators, EP.196) · May 24, 2021 · at 15:53
Stanford researcher Ashby Monk discusses research conducted for the Biden transition team on how advanced data systems impact institutional capital allocation.
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“We found that if you can really kind of model out those cash flows that we were talking about, cash flows, liquidity, unfunded pacing commitments and all of that you can drive. In fact, there's a UK based pension fund that did this. You can drive these organizations to hold less cash and diversify their portfolios less as in go deeper with funds and hold less cash and invest more because with the right data and analytics, you now have more confidence in your cash position and your commitments. And so you can do more with that cash.”
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