Invesco Releases 14th Global Survey of Sovereign Investors

71% of central banks and 54% of sovereign wealth funds say resilience is becoming as important as returns in portfolio construction

Infrastructure is the fastest-growing alternative asset class for sovereign wealth funds over the past five years

ETF adoption has reached significant levels among sovereign investors, with 39% utilizing ETFs. However, central banks and sovereign wealth funds use the same ETFs for fundamentally different purposes

Sovereign wealth funds view AI as a structural shift, while 52% identify rising market concentration as the top portfolio risk in AI-related investments

14th Invesco Global Sovereign Asset Management Study

London, June 29, 2026 – According to the 14th Invesco Global Sovereign Asset Management Study, sovereign investors managing approximately $29 trillion (¥4,613 trillion)* are undertaking a comprehensive reassessment of portfolio construction. The findings highlight fundamental shifts in how central banks and sovereign wealth funds are balancing resilience, returns, and diversification amid an increasingly complex investment landscape.

The survey, which included 144 institutions comprising 90 sovereign wealth funds and 54 central banks, reveals that the current geopolitical environment is reshaping sovereign investors’ mindsets and prompting rapid reevaluation of investment strategies. Escalating U.S.-European tensions over Greenland, the prolonged war in Ukraine, and emerging instability in the Middle East have created complex risks directly impacting energy security, trade routes, and supply chains. These factors are driving a fundamental rethink of portfolio construction with greater emphasis on resilience and diversification.

Resilience Moves to the Core of Portfolio Design

Resilience is shifting from being a secondary benefit of diversification to a primary objective in portfolio construction. 71% of central banks and 54% of sovereign wealth funds say resilience has become equally important as returns in portfolio design. This shift is reflected in monitoring practices, with concentration risk analysis and scenario testing becoming central to evaluation frameworks. 82% of central banks monitor concentration risk and 76% use scenario analysis, while among sovereign wealth funds, 65% monitor concentration risk and 62% use scenario analysis.

Capital allocation is shifting toward assets that deliver both resilience and returns. Infrastructure linked to energy security and energy transition is seen as the most reliable resilience theme by 80% of sovereign investors, driven by surging demand for power and data infrastructure due to AI adoption.

Resilience considerations are extending beyond portfolios. Multiple institutions are reassessing their reliance on U.S.-based custodians, counterparties, and settlement infrastructure, with some already building alternative systems. Five years ago, the location of asset custody was rarely a strategic consideration, but by 2026 it has become a key issue.

Benjamin Jones, Head of Global Research at Invesco, said: "The biggest shift among sovereign investors is viewing resilience not as a 'nice-to-have' but as a 'must-have.' Amid inflation shocks, geopolitical fragmentation, and rising market concentration, investors are reevaluating traditional diversification assumptions and rebuilding portfolios to withstand a wider range of scenarios. Factors such as liquidity, governance, scenario analysis, and access to assets are now paramount. These investors are not trying to predict the next shock or abandon long-term investing. Instead, they aim to build portfolios that are durable across a broad range of scenarios to achieve more sustainable long-term investing in an uncertain world."

Long-Term Investing in an Increasingly Challenging Environment

Long-term investing has become more critical amid rising uncertainty, yet maintaining it in practice has become more difficult. Approximately 40% of sovereign wealth funds report that their actual investment horizon falls short of their intended horizon, with particularly large gaps among investment and debt sovereigns. The ability to capture liquidity premiums and long-term returns depends on patient capital, a principle many institutional investors espouse but do not fully achieve in practice.

Against this backdrop, capital is being reallocated away from concentrated public equities. 65% of sovereign wealth funds identify private markets as a key source of returns, with notable increases in allocations to infrastructure and private credit.

Infrastructure investment reached 9.0% of sovereign wealth fund assets in 2026 (up from 4.9% in 2022), making it the fastest-growing alternative asset class over the past five years. Across regions, infrastructure investments are supported by themes such as decarbonization, renewable energy, digital infrastructure, and data centers, with expectations of boosting productivity and long-term economic growth.

Expanding Role of ETFs

As of the end of 2025, global ETF assets reached approximately $19.5 trillion, growing at an annual rate of about 15% over the past 20 years (source: ETFGI). The ETF market has expanded well beyond traditional passive equities into bonds, active strategies, and thematic investing.

This growth is driven by institutional investors’ increasing demand for flexibility, liquidity, and operational efficiency. While central banks and sovereign wealth funds were traditionally not major players in the ETF market—preferring highly customized direct investments and tailored mandates—adoption is accelerating, with 39% of respondents now using ETFs, indicating a significant level of penetration.

ETF adoption varies significantly by sovereign investor type**. 58% of investment sovereigns and 53% of debt sovereigns use ETFs, compared to only 31% of central banks and 24% of development sovereigns, the most selective group. This reflects a preference among the latter for direct investments and strategic mandates that allow for active engagement over listed products.

For central banks, ETFs provide access to investment opportunities without increasing internal resources or operational burdens. 67% of central banks use ETFs to gain strategic exposure, while sovereign wealth funds prioritize tactical asset allocation (64%) and liquidity management (52%). Key considerations also differ: ease of use (82%) is most important for central banks, while sovereign wealth funds prioritize transparency and liquidity.

While passive equity and passive bond ETFs remain dominant for both groups, thematic ETFs are gaining prominence, especially among sovereign wealth funds. Commodity ETFs serve a specific purpose for central banks, offering exposure to gold without the operational burden of physical holdings.

However, active ETF adoption remains in early stages, with many institutions yet to adopt them. Only 7% of sovereign wealth funds have allocated to active ETFs, though an additional 26% are considering doing so.

Jouette Rizk, Head of Middle East and Africa at Invesco, said:

"ETFs are taking on broader and more defined roles in sovereign investors’ portfolios. Central banks use them as efficient gateways to new asset classes, while sovereign wealth funds use them for tactical flexibility and targeted exposure. Adoption in active management and ESG strategies remains limited, but the direction is clear. ETFs are evolving from mere implementation tools into integral components of portfolio construction."

AI: Investment Opportunity and Operational Tool

AI (artificial intelligence) sits at the center of themes that are simultaneously growing in importance and complexity for sovereign wealth funds. Confidence in its structural significance is high: 77% view it as a transformative technology that will deliver substantial long-term growth, and only 2% question its economic impact. Yet translating this confidence into clear portfolio exposure remains challenging.

AI investment opportunities extend beyond software into physical infrastructure, energy systems, and national industrial foundations. In this context, 52% of sovereign wealth funds identify rising market concentration as the top portfolio risk in AI-related investments.

Investment preferences focus on areas supporting infrastructure and productivity gains, both seen as the most attractive long-term themes by 69% of sovereign wealth funds. Moreover, energy supply is viewed as the primary constraint in the next phase of AI infrastructure expansion, suggesting future developments will depend not only on technology but also on energy availability and regional supply capacity.

Meanwhile, internal use of AI is expanding rapidly: the share of sovereign wealth funds using AI in investment processes has doubled from 33% in 2024 to 69%. Primary uses include research and information integration, but AI is also widely applied to improve operational efficiency, generate ideas, and support decision-making.

Diversification Efforts by Central Banks

Foreign reserve management by central banks is undergoing structural transformation amid rising inflation, geopolitical fragmentation, and changing market conditions. There is a clear trend toward increasing allocations to equities, corporate bonds, and inflation-linked bonds, signaling efforts to move beyond traditional bond-heavy portfolios despite governance and regulatory constraints.

Concerns over the U.S. dollar are also growing: 61% of central banks believe high U.S. debt levels are negatively affecting the dollar’s long-term status as the dominant reserve currency (up sharply from 20% in 2024). However, in the absence of viable alternatives, diversification away from the dollar remains gradual.

In this context, gold has emerged as a key beneficiary asset and continues to occupy a central role in central banks’ reserve strategies. Over one-third of central banks intend to increase gold allocations over the next three years. This shift is driven by its role as an inflation hedge, with the share citing this rationale rising sharply from 35% in 2025 to 72% in 2026. Gold continues to be valued as a traditional hedge against geopolitical risk.

The report reiterates the importance of maintaining investment in diversified assets, drawing lessons from past periods of uncertainty. More detailed explanations are available in the full report. We encourage you to read it.

For more information, please visit:

Invesco Global Sovereign Asset Management Study 2026 – Website

Link to the 14th Invesco Global Sovereign Asset Management Study 2026 (in English): Invesco Global Sovereign Asset Management Study 2026 – Report (PDF)

Note: The Invesco Global Sovereign Asset Management Study was first published in 2013, making this the 14th edition. The study provides detailed analysis of investment trends among sovereign wealth funds and central banks. This year’s survey included individual interviews with 144 investment leaders, asset class heads, and senior portfolio strategists from 90 sovereign wealth funds and 54 central banks. The 2026 sovereign wealth fund sample is categorized by three key segmentation parameters (sovereign investor segment, region, and AUM size). The 2026 central bank sample is segmented by region. Fieldwork for the survey was conducted by NMG between January and March 2026. NMG Consulting: Total assets of survey participants amounted to $29 trillion as of March 2026 (converted at ¥159.09 per USD).

*Exchange rate as of end-March 2026: ¥159.09 per USD, based on WM Reuters rates.

**Sovereign Investor Classifications

Sovereign investors are categorized by purpose, as defined in the report:

Investment Sovereigns

Investment sovereigns do not hold specific liabilities for funding purposes. This typically means the segment has a particularly long investment horizon and a high tolerance for illiquid and alternative asset classes. They tend to have higher return targets, reflecting their ability to capture additional return premiums.

Debt Sovereigns

Debt sovereigns are focused on funding specific liabilities. They are further divided into those that have already funded their debt obligations (liquid debt sovereigns) and those whose funding requirements lie further in the future (partial debt sovereigns). Debt sovereigns generally align their portfolios with the duration of their funding obligations. Those with distant funding needs approach portfolio construction similarly to investment sovereigns. Those with immediate funding requirements tend to hold more diversified long-term portfolios but prioritize higher liquidity and yield.

Liquidity Sovereigns

Liquidity sovereigns are managed to act as a buffer during economic shocks. They are most commonly found in emerging markets with volatile exchange rates or resource-dependent economies heavily impacted by commodity price swings. Predictable capital allocation and rapid response are prioritized. Liquidity sovereigns have much shorter investment horizons and prioritize liquidity over returns.

Development Sovereigns

Development sovereigns operate only partially as portfolio investors. Their primary objective is not to optimize risk and return in a portfolio but to promote domestic economic growth. This is achieved through strategic investments in companies that significantly contribute to regional economic development and job creation. They pursue portfolio strategies using other assets influenced by the scale and nature of their strategic investments.

Central Banks

Central banks play broad domestic roles in their national economies, including acting as banker to the government, issuing currency, setting short-term interest rates, managing money supply, and supervising the banking system. They also have significant external roles, including foreign exchange policy and managing operations such as import/export payments and overseas government borrowing. To support these functions and maintain credibility, central banks hold substantial reserves. These reserves have traditionally been managed with a priority on capital preservation and liquidity.

About Invesco

Invesco Ltd. ("Invesco") is one of the world’s leading independent asset managers providing global investment capabilities. Invesco brings together a range of distinctive investment capabilities developed through global markets under a single umbrella, delivering comprehensive solutions by leveraging the full strength of the organization to meet the investment needs of individual and institutional clients worldwide. Invesco operates in more than 20 countries and is listed on the New York Stock Exchange (ticker: IVZ). More information about Invesco is available at the corporate website (in English).

https://www.invesco.com/corporate/en/home.html

About Invesco Asset Management Co., Ltd.

Invesco Asset Management Co., Ltd. is the Japanese subsidiary of Invesco, a leading global independent asset manager. The company provides a wide range of products and services—from traditional strategies such as equities and bonds to non-traditional and alternative strategies—to institutional clients including public and corporate pension funds, corporations, banks, and insurance companies in Japan and abroad. It also offers mutual funds and services to individual investors through banks, securities firms, and insurance companies. More information about Invesco Asset Management Co., Ltd. is available at its website.

https://www.invesco.com/jp/ja/

Additional Disclosures

This press release is issued solely to inform readers that this document is a translated version of a report originally prepared by an overseas Invesco entity, and is not a disclosure document under Japan’s Financial Instruments and Exchange Act. The information is based on reliable sources but Invesco Asset Management Co., Ltd. does not guarantee its accuracy or completeness.

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