Central bank reserve managers and public asset managers from pension funds, sovereign wealth funds, and international financial institutions gathered in Washington, DC for the World Bank’s Reserve Advisory & Management Partnership (RAMP) 21st Annual Executive Forum. The event aimed to address common challenges, share effective responses, and expand peer-to-peer networks.
The forum is held annually following the IMF-World Bank Spring Meetings. It features central bank governors, heads of pension and sovereign wealth funds, and leading scholars as presenters and participants.
This year’s two-day event hosted over 119 senior-level participants from 67 countries, representing 88 central banks, sovereign wealth funds, public pension funds, and international financial institutions. Among them were 44 governors, deputy governors, board members, and chief executive officers.
Key topics discussed included macroeconomic outlooks and asset management fundamentals amidst growing uncertainty in today’s financial landscape. Keynote speakers included Anne-Marie Slaughter of New America; Barry Eichengreen from UC Berkeley; Eswar Prasad from Cornell University; and Patrick Honohan, former Governor of the Central Bank of Ireland.
Participants engaged in discussions on managing public assets amid rapidly evolving economic conditions. They highlighted several takeaways:
1. Strong institutions like robust central banks are crucial for mobilizing resources for sustainable development. Central banks have prioritized governance reforms to boost transparency and accountability while embracing digitalization to modernize the financial sector.
2. Public asset managers face a challenging global landscape shaped by rising uncertainty and geopolitical risks affecting investment mandates. This environment raises questions about global reserve currencies' future.
3. Long-term thinking is essential for navigating short-term volatility with scenario planning becoming vital tools in uncertain environments.
4. Public sector investors are reassessing currency compositions of portfolios with alternatives like the euro or renminbi gaining attention despite limited changes observed so far.
5. Gold is regaining strategic relevance amid geopolitical risk but remains a secondary asset due to its limitations as a reserve asset.
6. Artificial intelligence offers potential for transforming key functions within public asset management though challenges such as data quality limit full integration currently being explored carefully by managers looking at leveraging these capabilities efficiently while managing their limitations effectively
The Reserve Advisory & Management Partnership (RAMP), established within the World Bank Treasury in 2001 serves over 85 members including central banks offering advisory services hosting executive training providing asset management services globally among other activities promoting knowledge sharing community building amongst public sector managers through various programs workshops sponsored external trainings delivered under its umbrella