For more than 20 years, we have asked central banks and sovereign wealth funds (SWFs) around the world about their views on macro-economic and asset allocation matters. This Annual Reserve Management Survey is now a hallmark piece from us.
In the 24th Annual Reserve Management Survey carried out in 2018, the responses indicated that the most sophisticated investors are :
- Diversifying their FX reserves; majority of the central banks are interested to increase allocations to non-government bond assets;
- Increasing their holdings of corporate debt and mortgage- and asset-backed securities; and
- Putting more of their reserves in Renminbi and Euro but the US Dollar remains the default currency to invest new reserves
Changes among sovereign investors in the last 12 months
What else did the survey reveal?
The Business Times in Singapore featured the key highlights of the survey with additional insights on how central banks and SWFs are looking at China:
… the use of RMB will likely rise towards a level of 10 per cent of global reserves in a decade’s time.
… it’s not a question of whether the RMB will become an important currency, but more a question of when
Sovereign wealth funds have been investing in Asia and emerging markets (EM) since 10 to 15 years ago, and China was always a part of an EM investment, but today you probably should look at it as a standalone part of your asset allocation.
At our second Sovereign Investment Circle, we discussed why mega-trends like slowing globalisation and climate change means sovereign investors need to think differently about diversification. More
The Business Times reports sovereign investors watch for demographics, tech disruption and sustainability. More
THIS WEBSITE IS NOT INTENDED FOR AND SHOULD NOT BE ACCESSED BY PERSONS LOCATED OR RESIDENT IN ANY JURISDICTION WHERE (BY REASON OF THAT PERSON'S NATIONALITY, DOMICILE, RESIDENCE OR OTHERWISE) THE PUBLICATION OR AVAILABILITY OF THIS WEBSITE IS PROHIBITED OR CONTRARY TO LOCAL LAW OR REGULATION OR WOULD SUBJECT ANY UBS ENTITY TO ANY REGISTRATION OR LICENSING REQUIREMENTS IN SUCH JURISDICTIONS. IT IS YOUR RESPONSIBILITY TO BE AWARE OF, TO OBTAIN ALL RELEVANT REGULATORY APPROVALS, LICENCES, VERIFICATIONS AND/OR REGISTRATIONS UNDER, AND TO OBSERVE ALL APPLICABLE LAWS AND REGULATIONS OF ANY RELEVANT JURISDICTION IN CONNECTION WITH YOUR ENTRANCE TO THIS WEBSITE. EACH INVESTMENT PRODUCT AND SERVICE REFERRED TO ON THIS WEBSITE IS INTENDED TO BE MADE AVAILABLE ONLY TO RESIDENTS IN SINGAPORE.
UBS RESERVES THE RIGHT TO CHANGE, MODIFY, ADD OR REMOVE CONTENT ON THE WEBSITE AS WELL AS THESE TERMS AT ANY TIME FOR ANY REASON WITHOUT NOTICE. SUCH CHANGES SHALL BE EFFECTIVE IMMEDIATELY UPON POSTING. YOU ACKNOWLEDGE THAT BY ACCESSING OUR WEBSITE AFTER WE HAVE POSTED CHANGES TO THESE TERMS, YOU ARE AGREEING TO THESE TERMS AS MODIFIED.