Lithuania adopts maximum diversification as defensive strategy

The Bank of Lithuania is adopting a maximum diversification strategic asset allocation, designed to protect the reserves portfolio from a higher-yield scenario and a protracted low-return environment.

In 2018, the Baltic central bank incorporated US corporate debt and inflation-protected securities into its €3.8 billion ($4.3 billion) reserves portfolio.

In an interview on March 14, during Central Banking’s National Asset-Liability Management Europe conference in London, board member Tomas