While the French and Southern US politicians are among the most protectionist and fearful in the world, all politicians seem to be wary about the possible activities of some SWFs. Whether or not this is a good thing is more philosophical than economic or financial. Politicians are used to calling for better transparency – usually from their opponents – as are the regulators who report to them. But the people who make investments happen, which in the West is the institutional investment professionals, should not necessarily follow this call. An analogous discussion, which seems to arise at most industry conferences, is whether super funds should have crediting rates or unit pricing, and, if they have unit pricing, should this be done daily, weekly or monthly?

At this year’s CMSF, one trustee suggested in a plenary session that it may be in members’ interests to price a fund only once a quarter. The suggestion drew shakes of heads around the auditorium, but it is neither silly nor a backward step, necessarily.

The media generally regards more, and more frequent, information as better than less. But if the additional information is not really new (i.e. it is not really information) and, in fact, may lead to adverse decisions being made by members, should it be provided so frequently? Remember the heyday of hedge funds?

A few years ago they eschewed transparency and basked in the glory of great returns. Is it coincidental that returns have come back as the cries for greater transparency have increased? Maybe, maybe not.