A recent survey of 60 central banks has found that low yields on top-rated government bonds are prompting investment in equities, representing a move towards riskier management of reserve portfolios.

The annual survey by the Royal Bank of Scotland showed that reserve managers were investing in markets and currencies that they would not have previously considered.

Eight of the 60 reserve managers said their central was already investing in equities, while nearly a quarter expected that equities would become part of their reserve management within the next five years.

The growing acceptance of equities and emerging market currencies ‘represents a remarkable shift in official sector attitudes towards the asset class’, the report said.

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