Central banks hasten push into new asset classes

Like other asset owners in recent years, even central banks have struggled to achieve their (relatively low) target returns. Now the prospect of interest rates being depressed for years to come to support Covid-hit economies seems to have accelerated moves by reserve managers into riskier assets such as emerging market stocks and private equity. “[The market environment] is making [central banks] realise that they have to change their mandates or guidelines quicker than before,” s…