Program day 1


Day 1:

New dynamics of financial markets in Latin America and beyond


Registration and breakfast


Chairperson's opening remarks


Global economic outlook: what can we expect in international and domestic markets?

  • Financial Markets and EMEs: Back to the upturn face of the Global Financial Cycle?
  • Latin American’s financial resilience: global and domestic factors
  • Traditional Fundamentals or Geo-Political and Policy Risks?
  • Economic Prospects for the future

Recent Developments on reserve management at Banco Central do Brasil

  • Governance and investment process: active management on short and medium term strategies
  • Recent changes on the reserves composition
  • Diversification to new asset classes

Industrial Revolution 4.0; Globalization; Geopolitics – 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

Networking break


The changing investment landscape: managing risk in an unconstrained fixed income strategy

  • The main challenges facing bond investors today
  • Active management – enhancing fixed income flexibility in 2019
  • Seeking to reduce the vulnerability of a traditional core portfolio
  • How market hostility due to shifting global macro conditions reemphasize the value of active fixed income management

Strategic asset allocation: peering into the future with the help of market prices

  • Financial markets and the unprecedented challenges faced by reserve managers
  • Banco de México’s reassessment of the priorities of reserve management towards the preservation of capital
  • Rethinking the way to analyse asset class returns and the co-dependency of asset classes
  • The necessary steps to determine SSA

The ongoing evolution of securities lending – unlocking the Americas

  • How the macro environment could shape lending in 2019
  • A fresh look at investment strategies and opportunities within the region
  • Risk, regulation and returns – providing flexibility within the current environment
  • What’s in store for securities lending - challenges on the horizon


Asset allocation: evolving and adapting to new demands


Working groups: Identifying good practices in reserve management

Each group will be led by an expert moderator, providing participants with an opportunity to delve deeper into the key questions they are facing.   

  • Current trends and challenges in reserve management 
    - This group will discuss some of the main trends in reserve management practices and will explore some of the challenges ahead
  • Reinventing fixed income markets 
    - How How are fixed income markets changing? What factors are driving change – in different markets and geographies’? Led by an experienced market practitioner, this group will look forward at credit dynamics from the perspective of a reserve manager
  • Factor based investing in times of unconventional central bank policies 
    - This group will explore which factors might be favoured if monetary policy becomes more restrictive and interest rates finally increase?

Networking break


Active Vs. passive in reserves management: a model for active size definition, number of managers and reward and punishment policy

  • Active Vs. passive in reserves management and its subsequent choices
  • Methodology for defining the size of the active portfolio and the number of managers
  • Range of validity of (sensitivity analysis), and some caveats about the methodology
  • Analysing reward and punishment (stick and carrots) policies by extending the current methodology

Greening the financial system: the new role of central banks

  • Green and sustainable bonds – a key part of the ESG toolkit
  • Incorporating ESG factors into the decision-making process
  • ESG’s capabilities to can enhance investment returns over the long term 
  • The current difficulties associated and how it demands a multifaceted approach

Chairperson's closing remarks


Close of conference


Depart for gala dinner with Francisco Mayorga, Former Governor, Central Bank of Nicaragua

Transport to leave at 17.30 for Monumento a la Revolución

Day 2:

Balancing risk and return: the evolution of opportunities 


Registration and breakfast


Chairperson's opening remarks


The US economy in 2019: recent policy developments and the longer term challenges

  • Monetary policy developments in the United States and the evolving longer-term challenges
  • How vulnerable is the global economy to a synchronised slowdown from both US and China?
  • What type of policies must countries pursue to build resilience?

The use of an internal credit assessment in managing foreign reserves

  • Addressing technical issues and building credit assessment expertise
  • Avoiding cliff effects on the portfolio and mechanistic reliance on credit ratings
  • Balancing business value and resource implications
  • Communication and reputational considerations

Networking break 


Portfolio and risk management for central banks

  • Active portfolio management and portfolio construction
  • Diversifying market and default risk in high grade bond portfolios
  • Optimal active portfolio management and relative performance drivers
  • Hedging inflation risk with domestic investment in a developing economy

Dynamic SAA: a framework to achieve multiple objectives


Bracing for challenges and risks ahead: a continued period of change in 2019 and beyond

  • How have markets coped with major events over the past year, and what does that mean for the year ahead?
  • A year of political uncertainty and the challenges associated
  • How to minimise these bouts of political uncertainly and market volatility in the run up to major elections
  • How do new technologies shape the future of central banking?

Chairperson's closing remarks


Conference concludes with lunch