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Reserves Advisory and
Management Program (RAMP)

Capacity Building and Know-How Transfer

Over 15 years experience in consulting and capacity building

 

Over 40 years experience in asset management with over US$70 biillion in assets under management

Central banks manage substantial foreign currency financial assets to meet foreign currency needs and manage exchange rate fluctuations. Policy objectives for these portfolios typically encompass safety, liquidity and earning a competitive return. World Bank Treasury has a long record of managing similar portfolios with a proven record of outperforming policy benchmarks while controlling downside risks in a highly disciplined fashion.

A central bank engagement is led by an experienced investment management professional with senior level experience running reserves management operations in major central banks. These colleagues bring a solid understanding of issues relating to central bank policy decisions, organizational structure and staffing to the project and play an advisory role to senior policy makers. While customized to individual needs, most central bank engagements cover the following areas.

Government and Institution Building

Assist central bank policy makers in strengthening the governance structure through defining policy objectives and ensuring that an investment policy, guidelines, and strategic asset allocation is in place to control risks within acceptable levels while earning a competitive market return.

Developing internal strategic asset allocation capabilities

Assist in building in-house capacity to develop policy porposals for the strategic asset allocation and translating the SAA into replicable benchmark portfolios. RAMP provides clients with a proprietary in-house analytical model, the Asset Management Workbench, to develop and stress test the SAA and highly technical training to staff on both the theory and use of the model.

Expanding Internal Asset Management Capacity

Assist fund managers in expanding asset management skills across broad fixed income sectors, which may include money markets, high government and agencies, interest rate futures and agency mortgage backed securities (MBS).

Risk Management and Analytics

Develop a multi-faceted risk management function with robust quantitative and qualitative risk indicators encompassing market risks, credit risk and operational risk.

Engaging External Partners

Assist in engaging external service providers, including asset managers, global custodian and systems providers. Assist in developing capacity to manage an external asset management program.

Building Legal Expertise in Investment Transactions

Provide legal training to in-house lawyers relating to protecting cetnral bank interests under contractual arrangements for securities lending, futures transactions, external asset manager programs and private sector custodians.

Developing A Public Communication Strategy

Assist in developing a communication strategy and reporting framework to provide meaningful financial reporting and address frequently asked questions by official stakeholders, the public and the press regarding investment strategy and risks.