Sovereign Asset Management:A Practical Framework For A New Era In Sovereign Investment

Course details

Target Audience:

The course is targeted at mid- to senior-level officials who are actively engaged in managing sovereign assets and risk-management functions at central banks and other institutions entrusted with the management such as sovereign wealth funds (SWFs), as well as public pension funds.

Qualification:

Experienced practitioners from central banks and SWFs with a relevant background in designing and implementing policies for the management of sovereign assets and liabilities.

Language:

The course is conducted in English with simultaneous interpretation into Arabic.

Course Description:

This course, presented by the IMF’s Monetary and Capital Markets Department, addresses issues pertaining to how countries link policy objectives, and macroeconomic and institutional constraints in the management of sovereign foreign assets. An emphasis is placed on the range of approaches which may be employed in developing a framework for sovereign strategic asset allocation (SAA) and investment policies, taking into account the different objectives and constraints of different types of sovereign investors. The management of associated risks features prominently. Lessons from the global financial crisis for managing sovereign assets are highlighted, as are new challenges. Finally, simulation-based tools, hands-on training, and country case studies are used to illustrate practical issues, including presentations by invited practitioners from the financial markets.

The course considers, inter-alia, the following:

•  Macro-financial linkages in sovereign asset management – including how the management of sovereign assets and liabilities can be approached in a way that serves both the needs of domestic stakeholders, as well as the broader international financial system;
•  New advances in strategic asset allocation and portfolio construction methodologies – including the limitations and benefits of different approaches to building robust portfolios;
•  Risk management – including the management of liquidity, currency, duration, credit and tail risks, as well as asset-liability management considerations;
•  New challenges in sovereign investment management – including navigating a world of financial repression and a shortage of safe assets; financial deepening in emerging capital markets; a framework for outsourcing and internalizing asset management; and considerations for domestic versus foreign investment of sovereign assets