contribution to national development – the cornerstones of this institution – forever live on. this publication is a useful reminder to our successors of these critical tenets that underpin the creation of an institution of excellence. 2 / 3 bis central bankers'speeches the late united states president theodore roosevelt once said : “ the more you know about the past, the better prepared you are for the future. “ this observation is a universal truth, and both sides of the coin helps us and future generations to understand the past forty - five years of the central bank of barbados : its work, its mission, its vision, its journey and its people, like many of you and me. that perspective is, in a nutshell, why we wrote this book. please enjoy the rest of the evening and get yourself a copy. i thank you. 3 / 3 bis central bankers'speeches

towards benefits ( and expenses ) and investment losses. we need to fund these gaps given the falling birth rates and increasing longevity risk. i commend the fsc's ( financial services commission's ) efforts to engage the administrators of plans whose funding has fallen below 80 percent and provide evidence that special payments are being made. having looked at the domestic risk factors, i will now examine some global downside risks. pension funds are not immune to the ripple effects that are caused by global political events. whether it's war, political unrest, or changing regimes, there are short and long - term implications for pension funds. those with significant equity or bond holdings see immediate impacts on their portfolio values. liquidity too becomes a challenge because of the difficulty in liquidating positions at favourable prices due to market disruptions. and over the long term, many pension funds are forced to reassess and modify their asset allocation strategies, which impact returns and risk profiles. volatility in the financial markets is another risk that can be a nightmare for pension fund managers. the unpredictability we are witnessing in the equity markets, which are historically a source of higher returns, is causing earnings to fluctuate. for pensions, the long - term trends should matter more than any day to day volatility. this means balancing the quest for higher returns with the need for stability. there has been a noticeable " flight to quality, " i. e. a shift towards safer, more stable investments. while this may protect against short - term volatility, it often comes at a cost to long - term returns. investors gravitate to government bonds, which are perceived to be more stable. however, this increased demand for these assets drives up their prices and pushes yields down. investment managers must balance this trade - off, ensuring both short - term stability and long - term growth. in conclusion, i will outline how pension fund managers can navigate the impact of these uncertainties. as stewards of investor funds, you are responsible to stay informed, agile, and proactive in managing these risks. this means that you have to continue to train and 3 / 4 bis - central bankers'speeches develop your skills so that you can regularly reassess and adjust your asset mix in response to evolving risks and opportunities. how can you change up your assets'portfolio? diversification is key. adopting dynamic asset allocation strategies, i. e. a portfolio management strategy that frequently adjusts the mix