# The Asset Owner Investment Officer: companion files

Julian R. Sterling

## What is here

- **Asset_Owner_Model.xlsx**: the workbook that rebuilds the Ashgrove case and reproduces the figures of the book with live formulas. Sheets: Read Me, Inputs, Portfolio, Projection, Monte Carlo, Attribution, Liquidity, Fees and Search, Comparisons, Checks.
- **Investment_Office_Toolkit.docx**: the checklists of Appendix B (investment policy statement, capital market assumptions review, asset-liability study, manager search, watch list and termination, quarterly board report, liquidity stress test), in editable form.

## Which sheet answers which chapter

- Chapters 4 and 5: Portfolio (expected return and volatility of the old and new policy portfolios)
- Chapters 2 and 6: Projection (FY2026 roll-forward, funded ratio path) and Monte Carlo (1,000 paths; the book uses 10,000, so results differ slightly)
- Chapter 8: Liquidity (rebalancing example, two-year liquidity stress test)
- Chapters 9 and 10: Fees and Search (fee budget, information ratio, probability that a good manager trails)
- Chapter 13: Attribution (FY2026 allocation and selection effects)
- Chapters 2 and 6: Comparisons (discount rate, hedge ratio, endowment spending rule, insurer surplus)

## Two inputs to change first

1. On Inputs, lower the expected arithmetic return of private equity by 2 points: watch the new policy's expected compound return on the Portfolio sheet and the funded ratio path on the Projection sheet.
2. On Inputs, change the public equity shock of the liquidity stress test from minus 30 percent to minus 45 percent: read the coverage ratio on the Liquidity sheet. Reset the inputs afterwards: the Checks sheet compares the workbook with the figures printed in the book.

Blue type on a light blue background is an input, black type a formula. No macro, no circular reference, no external link. The Checks sheet should read ALL CHECKS OK on the default inputs.

The Ashgrove Public Employees' Retirement System, the Fernley College endowment, the insurer and the sovereign fund are fictional; the model is annual and simplified; all case figures are illustrative assumptions, not market data or forecasts. Provided as is, without warranty. Not investment, actuarial, legal, tax or accounting advice.