Third parties manage roughly one-sixth of reserves
Compensation for external asset managers takes different forms across jurisdictions
Central banks outsource one-sixth of their reserves portfolios to external asset managers, data from the Reserve Benchmarks shows.
The outsourced proportion of reserves averages 16.6% across 62 central banks that supplied data. An American respondent from a lower-middle income country deploys the largest 60% of its reserves to external asset managers. The median value in the sample is 10%.
Smaller reserves holders are likely to deploy a higher share of their reserves to third parties for
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More on Reserves
Four-fifths of central banks review strategic asset allocation annually
Approach tends to be more pronounced among smaller reserves holders
ESG gap between advanced and emerging economies narrows
ESG bond allocations are slightly down overall, but EMDEs are catching up
Foreign exchange interventions jump 71% year on year
One in four central banks uses derivatives for FX intervention
Investment tranches account for half of reserves
Just one-fifth of central banks lack tranching mechanisms
Central bank gold reserves ramping up
Equities also on the rise, but remain idiosyncratic
Larger reserve holders operate longest portfolio duration
Duration among respondents holds steady at around two years, on average
Reserves exposure to non-SDR sovereign debt increases
US Treasuries and gold remain the most prominent asset classes
US dollar continues to dominate central bank FX reserves
Nearly all central banks hold dollars, but emerging market reserve managers have the highest allocations