Day One – 5 September 2018 (Wednesday)

Macro Policy Divergence and Balance Sheet Impact




Welcoming and Chairperson’s Opening Remarks


Opening Address: Policy shifts in advanced economies and how will central bank react

  • International dimension of monetary policies and challenges for central banks
  • Meaning of policy divergence for investment markets
  • Effects on asset prices and implications for financial stability
  • Outlook on volatility and implications for national balance sheets


Presentation: “Future-proofing” a central bank balance sheet and risk management optimisation

  • Strategic review – managing balance sheet risks as investments continue to evolve and diversify, including support for “Greening the Financial System”
  • Evolving counterparty credit risk management  in an increasingly complex and uncertain market
  • Risk management of contingent balance sheet risks


Networking Break


Presentation: Globalisation; US engagement; EU integration – peak, plateau or plunge?

  • Divergences across developed and emerging currency, fixed-income and equity markets
  • Outlook for the combined impact of demographic, technological and structural economic on real economic growth
  • Major challenges and possibilities for the investment industry
  • Asset growth and performance drivers for active management and factor-based, smart-beta strategies


Panel discussion: Capital flow trajectory and changes in portfolio allocation

  • How have changes in capital flows affected FX, capital markets and real economies?
  • What factors may shift macro fundamentals and affect exchange rates in Asia Pacific?
  • How have sovereign invsetors responded, how will they?
  • What impact would the rise of protectionism and trade disputes have on investment strategies?


Presentation: China’s growth stress, FX policy and implications for sovereigns

  • Growth, a self-inflicted slowdown versus trade conflict with the US
  • Signals for market stabilisation
  • PBoC’s policy shift to devaluation – where is the proof?



Portfolio Management and Capital Preservation


Executive Address: Holding the RMB in reserves – the Thai experience

  • Importance of China and Chinese markets
  • Role of RMB in the portfolio
  • Development in portfolio diversification with the RMB


Presentation: Active investment and portfolio diversification in a sovereign wealth fund

  • Active vs Passive approaches in a sovereign wealth context
  • Diversification and asset class expansion
  • Key steps and success factors in undertaking active investing
  • Risks and returns of an active strategy in a long-term horizon

Presentation: How do factor based strategies fit within a core-satellite investment approach?

  • Is diversification of active managers always a good thing?
  • Incorporating management fees into the core-satellite framework
  • Empirical analysis of factor risk in satellite equity portfolios
  • How factor based investing can fit within a core satellite approach


Networking Break






Roundtable Discussion Groups

In this hour, conference participants will join a group discussion around the theme that interests them the most. Subject matter experts will encourage knowledge transfer between participants. Following the discussion, table hosts will take turns to share key takeaways on the stage.

Table A – Geopolitical risk and market impact

The table will discuss how geopolitical risk could impact the financial market over the next 6-12 months:

  • What might be the perceived “safe haven” markets?
  • What are the wider implications for long-term geographic and asset allocation in the context of Brexit and Trump policies?
  • What are the macro challenges observed in emerging markets?
  • What keeps you awake at night?

Table B – Stress testing practices in reserve management

The table will discuss the growing importance of stress testing in the banking world and its broader adoption in reserve management context:

  • How has the practice of stress testing evolved at reserves managers?
  • How stress testing has been applied to optimise risk-return profiles and capital adequacy?
  • How central banks determine dividend policy to achieve a neutral stance in relation to monetary policy and meet public’s expectations?
  • Is stress testing discussion extending to a systemic risk context? How have reserves managers been involved in questions of systemic stability? How could or should they be involved?

Table C – Rising rates and portfolio returns

The table will explore implications of interest-rate normalisation on the market and responses from reserve managers:

  • How long do you think the lower rates, lower return environment would persist?
  • What is the impact of evolving yield curves on portfolio returns?
  • What are the latest challenges and strategies in managing fixed return targets?
  • How worried are you about “snapback” risk?


Fire-side chat: Trends in asset diversification among sovereigns

  • What is driving the shift from traditional asset classes into equities and alternatives?
  • How are sovereigns diversifying their portfolio to spread their risks abroad?
  • What investment risk factors need to be considered?
  • How to create an investment strategy to balance financial and strategic returns in the long run?


Chairperson’s Closing Remarks


End of Day One


Cocktail reception & Gala dinner

Day Two – 6 September 2018 (Thursday)

Risk Management: A Forward-looking Perspective




Chairperson’s Opening Remarks


Opening Address: Outlook on central bank risk management in a changing macro environment

  • Nature of European Stability Mechanism (ESM) and risk factors
  • How ESM views and manages risks in investments and funding operations
  • Application of derivatives instruments to manage financial risks
  • Lessons for risk management at public financial institutions


Presentation: Measurement and management of risk in a sovereign wealth fund

  • Rise of sovereign investors and responsibilities
  • Risk management priorities, process and governance in an increasingly complex and uncertain market
  • Portfolio risk and performance management parameters and tools
  • Future challenges and way forward


“Meet the Closing Panel Executives” Networking Break

The closing panel executives will each host a table for informal discussion on issues and questions to be cover in the closing panel. Conference participants will have the opportunities to shape the content of the closing panel.


Presentation: Investment risk management in a world of low volatility and returns

  • Outlook on the benign economic environment
  • Uncertainties and underlying risks behind low volatility
  • Values on investing in emerging markets vs developed markets
  • Considerations in risk-adjusted performance measures


Closing executive panel: 5 questions in 45 minutes

  • What economic trends will shape investment strategies in the year ahead?
  • What types of assets are sovereigns investing as interest rate normalise?
  • How often should reserve managers rebalance portfolio for currency risks?
  • How will your relationship with external asset managers evolve to achieve the target returns?
  • What emerging risks are sovereigns most concerned with?


Chairperson’s Closing Remarks


Lunch and Close of Conference