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Central bank reserve asset management whitepaper series

Central bank reserve asset management whitepapers
Central bank reserve asset management whitepapers

Our series of whitepapers co-authored with Jennifer Johnson-Calari, (JJC Advisory, Founder and Former Head of Reserves Advisory and Management Program World Bank) and Adam Kobor (Director of Investments, New York University Endowment Fund), focus on the challenges faced by central bank reserve managers. They cover:

  1. Opportunities to expand investment horizons
    Central banks have come under financial pressure as they face diminished or negative returns on traditional reserve assets. We argue the case for investment strategies based on reserve adequacy considerations rather than short-term accounting concerns.
  2. Balancing stability and return objectives
    Central Banks are struggling to meet their capital preservation objectives in today’s low yield environment, how can linking a country’s external risk profile to its strategic asset allocation help them meet their objectives?
  3. Managing liquidity risk
    The third whitepaper in the series examines the issue of managing liquidity risk within a market environment characterised by innovation, changing regulation and potentially tighter global liquidity.
  4. Active vs passive management
    The debate around active vs passive management is a familiar one, but when and how does it make sense for a central bank to actively manage?
  5. Currency composition of foreign currency reserves
    Delve into the attributes of a reserve currency from a historical perspective and consider the forces at play in the 21st century.

Read the consolidated series

Investment risks

  • The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested.

Important information

  • Where individuals or the business have expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals and are subject to change without notice.