Central Bank

The Central Bank had been growing steadily for over 7 years. As a historically risk-averse institution looking to increase their return on assets, they needed a truly conservative approach. Could they stay true to a conservative World Bank driven strategy while enhancing yield above a complex global benchmark?

Invested predominantly in G10 sovereigns, they chose to introduce yield-enhancing sectors that also stayed true to their central bank mandate. The client was impressed by our willingness to understand the thinking behind their Strategic Asset Allocation, their focus on risk, and the challenges they face as a conservative institution.

Being a public organization, we had to satisfy the internal investment teams and follow strong governance structure. We brought our broad expertise across asset classes, quantitative engineering, and client portfolio management to build a holistic risk and portfolio management framework that could be embraced across the central bank’s governance and investment teams.

Not only did we design a unique asset allocation that worked with our client’s complex benchmark, but we also introduced tools that addressed tail-risk and satisfied the objectives of stakeholders across the organization.