Invesco Global Sovereign Asset Management Study 2025: 141 Sovereign Wealth Funds (SWFs) & Central Banks with $27 Trillion Assets, +9.4% 1-Year Return in 2024, Asset Allocation in 2024 Cash 9%, Fixed Income 30%, Equities 28%, Illiquid Alternatives 19%, Liquid Alternatives 4%, Direct Strategic Investment 10%, Private Equity 7.4%, Real Estate 8.3%, Infrastructure 3.7%, Hedge Funds / Absolute Return Funds 3.9%, Commodities 0.5, Top 3 Net Increase Intent are Infrastructure, Fixed Income, Private Equity, Top Emerging Market Priority is Asia (ex-China), Top 5 Preferred Approach to Access China are Public Equities, Private Market Investments, Multinationals with Exposure to China, Corporate Bonds, Government Bonds, Top 5 Most Attractive Sectors in China are Digital Technology & Software, Advanced Manufacturing & Automation, Clean Energy & Green Technology, Healthcare & Biotech, Consumer Staples / FMCG, Total Foreign Exchange Reserves In 2024 is $11.47 Trillion, Total Foreign Exchange Reserves Breakdown in 2024 USD 58% / Euro 20% / Others 14% / Yen 6% / Renminbi – 2%, Gold as Reserves by 86% of Central Banks
14th August | Hong Kong
United States investment manager Invesco ($2 trillion AUM) has released the Global Sovereign Asset Management Study 2025, providing key investments & portfolio insights from 141 sovereign wealth funds (SWFs) & central banks with $27 trillion assets. No. of SWFs & Central Banks – 141. Total Assets – $27 trillion. 5 Types of Sovereign Funds – Investment Sovereigns, Liability Sovereigns, Liquidity Sovereigns, Development Sovereigns, Central Banks. Top 3 Risks to global economic growth in 2026 – Geopolitical tensions hampering trade & growth, High inflation & tightening monetary policies, Excessive volatility in financial markets. Top 7 Risks to global economic growth in next 10 years – Rising geopolitical fragmentation & protectionism, Climate change impact & transition risks, High sovereign & private debt levels. All Sovereigns ex-Central Banks 1-Year Return in 2024 – Increase +9.4%. Asset Allocation in 2024 – Cash 9%, Fixed Income 30%, Equities 28%, Illiquid Alternatives 19%, Liquid Alternatives 4%, Direct Strategic Investment 10%, Private Equity 7.4%, Real Estate 8.3%, Infrastructure 3.7%, Hedge Funds / Absolute Return Funds 3.9%, Commodities 0.5%. Impact of Donald Trump Presidency on Portfolio for Central Banks – Major Restructuring 9% / Moderate Change 58% / Limited Impact 33%. Impact of Donald Trump Presidency on Portfolio for Sovereign Wealth Funds – Major Restructuring 13% / Moderate Change 42% / Limited Impact 45%. Long-term Outlook on interest rates & bond yields – 74% forecast mid-single digits. Top 3 Increase in Net Allocation Intention in 2025 for Sovereign Wealth Funds – Infrastructure, Fixed Income, Private Equity. Top 3 Decrease in Net Allocation Intention in 2025 for Sovereign Wealth Funds – Cash, Hedge Funds / Absolute Return Funds, Commodities. Importance of Trading Liquidity in fixed income investment for Sovereign Wealth Funds – Critical 30% / Important 45% / Less important 9% / Not important 16%. Investments in private credit for Sovereign Wealth Funds – Private Credit Funds 63% / Direct Investments 44% / Do not invest 27%. Top Emerging Market priorities by region for Sovereign Wealth Funds – Asia (ex-China) 86%. Top 5 Preferred approach to access China for Sovereign Wealth Funds – Public equities, Private market investments, Multinationals with exposure to China, Corporate bonds, Government bonds. Preferred approach to access Emerging Markets for Sovereign Wealth Funds – Mainly via external managers 55% / Both direct & external managers 30% / Mainly direct investing 15%. Use of Index Strategies or ETFs for Passive Emerging Markets Investments for Sovereign Wealth Funds – Using 49% / Not using 51%. Expected increase in China allocation in next 5 years for Sovereign Wealth Funds – 59% to increase. Top 5 Drivers of China allocation for Sovereign Wealth Funds – Attractive local returns, Diversification for returns / portfolio, Increasing access/ opening markets to foreign investors, Better reflect China’s position as a trading partner, Political diversification. Top 5 Most attractive sectors in China for Sovereign Wealth Funds – Digital technology & software, Advanced manufacturing & automation, Clean energy & green technology, Healthcare & biotech, Consumer staples / FMCG. Equities Portfolio Allocation by Style for Sovereign Wealth Funds – Active 73% / Passive 20% / Factor 7%. Fixed Income Portfolio Allocation by Style for Sovereign Wealth Funds – Active 72% / Passive 22% / Factor 6%. Equities Portfolio Allocation by Style for Central Banks – Active 43% / Passive 47% / Factor 10%. Fixed Income Portfolio Allocation by Style for Central Banks – Active 66% / Passive 29% / Factor 5%. Total Foreign Exchange Reserves in 2024 – $11.47 trillion. Central Banks Reserves expected to increase in next 2 years – 64%. Enhancements to risk management framework in recent volatility & geopolitical events – Yes 72%. Changes to reserve adequacy approach due to events in last 3 years – Yes 62%. Total Foreign Exchange Reserves breakdown in 2024 – USD 58% / Euro 20% / Others 14% / Yen 6% / Renminbi – 2%. View on a currency to have greater global role in next 10 years – Chinese Renminbi 82%. Gold as Reserves by Central Banks – Yes 86%. Gold Investments to increase in next 3 years by Central Banks – Increase 47% / Same 53%. Top 5 reasons for Gold investments in next 3 years by Central Banks – Safe haven during financial instability 80%, Concerns over geopolitical volatility 63%, Currency diversifier 54%, Concern over freezing of central bank assets 39%, Inflation protection 35%. Top 4 Gold Investments by Central Banks – Physical gold held in own country 66%, Physical gold held in foreign central / bullion banks 75%, Gold ETFs 16%, Gold derivatives (Swaps / Futures) 9%. Invests in Digital Assets for Sovereign Wealth Funds – Yes 11% / No but may invest 50% / Will never invest 39%. Top 3 Investing in Digital Assets by Region for Sovereign Wealth Funds – Europe 62% / LATAM 60% / Africa 57%. Top 4 Roles digital assets can play – High risk / return asset 59%, Store of value 46%, Call option on future use for underlying technology 35%, Inflation hedge 32%. Top 3 Barriers to invest in digital assets for Sovereign Wealth Funds – Regulatory pressure / issues, Volatility, Transparency. Top 3 Digital assets to consider – Cryptocurrencies 76%, Stablecoins 48%, Tokenised securities 17%. Central Bank Digital Currencies (CBDCs) for Central Banks – Launched 4% / Considering to launch 20% / Doing research 63% / Will not launch 13%. Top 2 Benefits of Central Bank Digital Currencies (CBDCs) for Central Banks – Efficiency in payment system 88%, Faster / better cross border payments 60%. Top 3 Risks of Central Bank Digital Currencies (CBDCs) for Central Banks – Cybersecurity & privacy 70%, Disintermediation of commercial banks 60%, Technology / infrastructure challenges 53%. See below for key findings & summary | View report here
“ Invesco Global Sovereign Asset Management Study 2025: 141 Sovereign Wealth Funds (SWFs) & Central Banks with $27 Trillion Assets, +9.4% 1-Year Return in 2024, Asset Allocation in 2024 Cash 9%, Fixed Income 30%, Equities 28%, Illiquid Alternatives 19%, Liquid Alternatives 4%, Direct Strategic Investment 10%, Private Equity 7.4%, Real Estate 8.3%, Infrastructure 3.7%, Hedge Funds / Absolute Return Funds 3.9%, Commodities 0.5, Top 3 Net Increase Intent are Infrastructure, Fixed Income, Private Equity, Top Emerging Market Priority is Asia (ex-China), Top 5 Preferred Approach to Access China are Public Equities, Private Market Investments, Multinationals with Exposure to China, Corporate Bonds, Government Bonds, Top 5 Most Attractive Sectors in China are Digital Technology & Software, Advanced Manufacturing & Automation, Clean Energy & Green Technology, Healthcare & Biotech, Consumer Staples / FMCG, Total Foreign Exchange Reserves In 2024 is $11.47 Trillion, Total Foreign Exchange Reserves Breakdown in 2024 USD 58% / Euro 20% / Others 14% / Yen 6% / Renminbi – 2%, Gold as Reserves by 86% of Central Banks “
![](https://www.caproasia.com/wp-content/uploads/2025/08/Air-Charter-Service-728x90-1.png")
Invesco Global Sovereign Asset Management Study 2025: 141 Sovereign Wealth Funds (SWFs) & Central Banks with $27 Trillion Assets, +9.4% 1-Year Return in 2024, Asset Allocation in 2024 Cash 9%, Fixed Income 30%, Equities 28%, Illiquid Alternatives 19%, Liquid Alternatives 4%, Direct Strategic Investment 10%, Private Equity 7.4%, Real Estate 8.3%, Infrastructure 3.7%, Hedge Funds / Absolute Return Funds 3.9%, Commodities 0.5, Top 3 Net Increase Intent are Infrastructure, Fixed Income, Private Equity, Top Emerging Market Priority is Asia (ex-China), Top 5 Preferred Approach to Access China are Public Equities, Private Market Investments, Multinationals with Exposure to China, Corporate Bonds, Government Bonds, Top 5 Most Attractive Sectors in China are Digital Technology & Software, Advanced Manufacturing & Automation, Clean Energy & Green Technology, Healthcare & Biotech, Consumer Staples / FMCG, Total Foreign Exchange Reserves In 2024 is $11.47 Trillion, Total Foreign Exchange Reserves Breakdown in 2024 USD 58% / Euro 20% / Others 14% / Yen 6% / Renminbi – 2%, Gold as Reserves by 86% of Central Banks
United States investment manager Invesco ($2 trillion AUM) has released the Global Sovereign Asset Management Study 2025, providing key investments & portfolio insights from 141 sovereign wealth funds (SWFs) & central banks with $27 trillion assets. See below for key findings & summary | View report here
Invesco Global Sovereign Asset Management Study 2025
Summary
- No. of SWFs & Central Banks – 141
- Total Assets – $27 trillion
- 5 Types of Sovereign Funds – Investment Sovereigns, Liability Sovereigns, Liquidity Sovereigns, Development Sovereigns, Central Banks
- Top 3 Risks to global economic growth in 2026 – Geopolitical tensions hampering trade & growth, High inflation & tightening monetary policies, Excessive volatility in financial markets
- Top 7 Risks to global economic growth in next 10 years – Rising geopolitical fragmentation & protectionism, Climate change impact & transition risks, High sovereign & private debt levels
Portfolio & Investments
- All Sovereigns ex-Central Banks 1-Year Return in 2024 – Increase +9.4%
- Asset Allocation in 2024 – Cash 9%, Fixed Income 30%, Equities 28%, Illiquid Alternatives 19%, Liquid Alternatives 4%, Direct Strategic Investment 10%, Private Equity 7.4%, Real Estate 8.3%, Infrastructure 3.7%, Hedge Funds / Absolute Return Funds 3.9%, Commodities 0.5%
- Impact of Donald Trump Presidency on Portfolio for Central Banks – Major Restructuring 9% / Moderate Change 58% / Limited Impact 33%
- Impact of Donald Trump Presidency on Portfolio for Sovereign Wealth Funds – Major Restructuring 13% / Moderate Change 42% / Limited Impact 45%
- Long-term Outlook on interest rates & bond yields – 74% forecast mid-single digits
- Top 3 Increase in Net Allocation Intention in 2025 for Sovereign Wealth Funds – Infrastructure, Fixed Income, Private Equity
- Top 3 Decrease in Net Allocation Intention in 2025 for Sovereign Wealth Funds – Cash, Hedge Funds / Absolute Return Funds, Commodities
- Importance of Trading Liquidity in fixed income investment for Sovereign Wealth Funds – Critical 30% / Important 45% / Less important 9% / Not important 16%
- Investments in private credit for Sovereign Wealth Funds – Private Credit Funds 63% / Direct Investments 44% / Do not invest 27%
- Top Emerging Market priorities by region for Sovereign Wealth Funds – Asia (ex-China) 86%
- Top 5 Preferred approach to access China for Sovereign Wealth Funds – Public equities, Private market investments, Multinationals with exposure to China, Corporate bonds, Government bonds
- Preferred approach to access Emerging Markets for Sovereign Wealth Funds – Mainly via external managers 55% / Both direct & external managers 30% / Mainly direct investing 15%
- Use of Index Strategies or ETFs for Passive Emerging Markets Investments for Sovereign Wealth Funds – Using 49% / Not using 51%
- Expected increase in China allocation in next 5 years for Sovereign Wealth Funds – 59% to increase
- Top 5 Drivers of China allocation for Sovereign Wealth Funds – Attractive local returns, Diversification for returns / portfolio, Increasing access/ opening markets to foreign investors, Better reflect China’s position as a trading partner, Political diversification
- Top 5 Most attractive sectors in China for Sovereign Wealth Funds – Digital technology & software, Advanced manufacturing & automation, Clean energy & green technology, Healthcare & biotech, Consumer staples / FMCG
- Equities Portfolio Allocation by Style for Sovereign Wealth Funds – Active 73% / Passive 20% / Factor 7%
- Fixed Income Portfolio Allocation by Style for Sovereign Wealth Funds – Active 72% / Passive 22% / Factor 6%
- Equities Portfolio Allocation by Style for Central Banks – Active 43% / Passive 47% / Factor 10%
- Fixed Income Portfolio Allocation by Style for Central Banks – Active 66% / Passive 29% / Factor 5%
- Total Foreign Exchange Reserves in 2024 – $11.47 trillion
- Central Banks Reserves expected to increase in next 2 years – 64%
- Enhancements to risk management framework in recent volatility & geopolitical events – Yes 72%
- Changes to reserve adequacy approach due to events in last 3 years – Yes 62%
- Total Foreign Exchange Reserves breakdown in 2024 – USD 58% / Euro 20% / Others 14% / Yen 6% / Renminbi – 2%
- View on a currency to have greater global role in next 10 years – Chinese Renminbi 82%
- Gold as Reserves by Central Banks – Yes 86%
- Gold Investments to increase in next 3 years by Central Banks – Increase 47% / Same 53%
- Top 5 reasons for Gold investments in next 3 years by Central Banks – Safe haven during financial instability 80%, Concerns over geopolitical volatility 63%, Currency diversifier 54%, Concern over freezing of central bank assets 39%, Inflation protection 35%
- Top 4 Gold Investments by Central Banks – Physical gold held in own country 66%, Physical gold held in foreign central / bullion banks 75%, Gold ETFs 16%, Gold derivatives (Swaps / Futures) 9%
- Invests in Digital Assets for Sovereign Wealth Funds – Yes 11% / No but may invest 50% / Will never invest 39%
- Top 3 Investing in Digital Assets by Region for Sovereign Wealth Funds – Europe 62% / LATAM 60% / Africa 57%
- Top 4 Roles digital assets can play – High risk / return asset 59%, Store of value 46%, Call option on future use for underlying technology 35%, Inflation hedge 32%
- Top 3 Barriers to invest in digital assets for Sovereign Wealth Funds – Regulatory pressure / issues, Volatility, Transparency
- Top 3 Digital assets to consider – Cryptocurrencies 76%, Stablecoins 48%, Tokenised securities 17%
- Central Bank Digital Currencies (CBDCs) for Central Banks – Launched 4% / Considering to launch 20% / Doing research 63% / Will not launch 13%
- Top 2 Benefits of Central Bank Digital Currencies (CBDCs) for Central Banks – Efficiency in payment system 88%, Faster / better cross border payments 60%
- Top 3 Risks of Central Bank Digital Currencies (CBDCs) for Central Banks – Cybersecurity & privacy 70%, Disintermediation of commercial banks 60%, Technology / infrastructure challenges 53%.
Invesco Global Sovereign Asset Management Study 2025
Profile:
- Sovereign Wealth Funds (SWFs) – 83
- Central Banks – 58
- Total SWFs & Central Banks – 141
- Total Assets – $27 trillion
Respondents:
- Investment Sovereigns – 15
- Liability Sovereigns – 36
- Liquidity Sovereigns – 10
- Development Sovereigns – 22
- Central Banks – 58
Region:
- North America – 22
- Europe – 32
- Middle East – 27
- LATAM – 16
- Africa – 14
- APAC – 30
5 Types of Sovereign Funds:
- Investment Sovereigns
- Liability Sovereigns
- Liquidity Sovereigns
- Development Sovereigns
- Central Banks
Sovereign Funds by Lowest Risk & Shortest Investment Horizon – Goals:
- Central Banks – Capital preservation & liquidity
- Liquidity Sovereigns – Investment & liquidity
- Liability Sovereigns – Investment & liability funding
- Development Sovereigns – Investment & development
- Investment Sovereigns – Investment only
1) Sovereign Funds Returns & Asset Allocation
1-Year Return in 2024:
- All Sovereigns ex-Central Banks: +9.4%
- Investment Sovereigns: +11.2%
- Liability Sovereigns: +8.6%
- Liquidity Sovereigns: +7.5%
- Development Sovereigns: +10.5%
1-Year Return in Last 5 Years (All Sovereigns ex-Central Banks):
- 2020: +7.3%
- 2021: +10%
- 2022: -3.5%
- 2023: +7.2%
- 2024: +9.4%
Asset Allocation in 2024:
- Cash – 9%
- Fixed Income – 30%
- Equities – 28%
- Illiquid Alternatives – 19%
- Liquid Alternatives – 4%
- Direct Strategic Investment – 10%
- Private Equity – 7.4%
- Real Estate – 8.3%
- Infrastructure – 3.7%
- Hedge Funds / Absolute Return Funds – 3.9%
- Commodities – 0.5%
2) Investment & Economic Outlook
Top 7 Risks to global economic growth in 2026:
- Geopolitical tensions hampering trade & growth – 88%
- High inflation & tightening monetary policies – 64%
- Excessive volatility in financial markets – 59%
- Fallout from the Russia-Ukraine conflict – 43%
- Supply chain disruptions & commodity price spikes – 43%
- Fallout from the conflict in Middle East – 43%
- Resurgence of COVID-19 & new virus variants – 9%
Top 7 Risks to global economic growth in next 10 years:
- Rising geopolitical fragmentation & protectionism – 76%
- Climate change impact & transition risks – 63%
- High sovereign & private debt levels – 57%
- AI and automation disrupting labour markets – 40%
- Cybersecurity threats & technological disruptions – 33%
- Aging demographics & workforce declines – 31%
- Another global pandemic event – 16%
Macro Outlook Insights:
- Geopolitical rivalry between major powers will be a major driver of market volatility – 89%
- Increased trade protectionism will lead to sustained higher inflation in developed markets – 85%
- De-globalisation poses a significant threat to investment returns – 62%
- Role of government policy in driving returns is becoming more important than market fundamentals – 38%
Impact of Donald Trump Presidency on Portfolio for Central Banks:
- Major Restructuring – 9%
- Moderate Change – 58%
- Limited Impact – 33%
Impact of Donald Trump Presidency on Portfolio for Sovereign Wealth Funds:
- Major Restructuring – 13%
- Moderate Change – 42%
- Limited Impact – 45%
Long-term Outlook on interest rates & bond yields:
- High-single / low-double digits – 3%
- Mid-high single digits – 12%
- Mid-single digits – 74%
- Very low single digits/negative – 11%
United States Monetary Policy under Donald Trump Presidency for Central Banks:
- More hawkish Fed stance – 28%
- No change – 22%
- More dovish Fed stance – 50%
United States Monetary Policy under Donald Trump Presidency for Sovereign Wealth Funds:
- More hawkish Fed stance – 32%
- No change – 34%
- More dovish Fed stance – 34%
3) Portfolio Insights
Top 4 Increase in Net Allocation Intention in 2025 for Sovereign Wealth Funds:
- Infrastructure: +34%
- Fixed Income: +24%
- Private Equity: +6%
- Equities: +1%
Top 4 Decrease in Net Allocation Intention in 2025 for Sovereign Wealth Funds:
- Cash: -14%
- Hedge Funds / Absolute Return Funds: -4%
- Commodities: -4%
- Real Estate: -1%
Importance of Trading Liquidity in fixed income investment for Sovereign Wealth Funds:
- Critical – 30%
- Important but will accept some illiquidity for yield – 45%
- Less important (balanced with other factors) – 9%
- Not important – 16%
Investments in private credit for Sovereign Wealth Funds:
- Private Credit Funds – 63%
- Direct Investments – 44%
- Do not invest – 27%
Expected change in private credit allocation for Sovereign Wealth Funds:
- Increase – 50%
- Same – 49%
- Decrease – 1%
Top Emerging Market priorities by region for Sovereign Wealth Funds:
- Asia (ex-China) – 86%
- China – 59%
- Latin America – 59%
- Middle East – 58%
- Central & Eastern Europe – 54%
- Africa – 44%
Top 5 Preferred approach to access China for Sovereign Wealth Funds:
- Public equities – 64%
- Private market investments – 49%
- Multinationals with exposure to China – 24%
- Corporate bonds – 22%
- Government bonds – 20%
Preferred approach to access Emerging Markets for Sovereign Wealth Funds:
- Mainly via external managers – 55%
- Both direct & external managers – 30%
- Mainly direct investing – 15%
Use of Index Strategies or ETFs for Passive Emerging Markets Investments for Sovereign Wealth Funds:
- Significant use – 9%
- Limited use – 40%
- Not using – 51%
4) China Insights
Expected change in China allocation in next 5 years for Sovereign Wealth Funds:
- Increase – 59%
- No change – 39%
- Decrease – 2%
Top 8 Drivers of China allocation for Sovereign Wealth Funds:
- Attractive local returns
- Diversification for returns / portfolio
- Increasing access/ opening markets to foreign investors
- Better reflect China’s position as a trading partner
- Political diversification
- Changes to global fixed income benchmarks
- Potential for more relaxed (outgoing) capital controls
- Belt & road projects
Top 9 Most attractive sectors in China for Sovereign Wealth Funds:
- Digital technology & software
- Advanced manufacturing & automation
- Clean energy & green technology
- Healthcare & biotech
- Consumer staples / FMCG
- Infrastructure & logistics
- Real estate & property
- Financial services
- Consumer discretionary & retail
Views on China – Sovereign Wealth Funds:
- China’s technology and innovation capabilities will become globally competitive – 78%
- Local government debt poses a serious threat to China’s financial stability – 59%
- Problems in China’s property sector present a major risk to the broader economy – 53%
- China will successfully shift from export-led growth to domestic consumption as its main growth driver – 48%
- China’s aging population will significantly reduce its economic growth potential – 48%
- The opening of China’s financial markets will continue to accelerate – 45%
- China has an unassailable lead in electric vehicles and clean energy technology – 47%
- Government stimulus and policy support can effectively maintain China’s growth – 31%
- China’s rising middle class will drive new waves of economic growth – 29%
5) Equities & Fixed Income Management
Equities Portfolio Allocation by Style for Sovereign Wealth Funds:
- Active – 73%
- Passive – 20%
- Factor – 7%
Fixed Income Portfolio Allocation by Style for Sovereign Wealth Funds:
- Active – 72%
- Passive – 22%
- Factor – 6%
Equities Portfolio Allocation by Style for Central Banks:
- Active – 43%
- Passive – 47%
- Factor – 10%
Fixed Income Portfolio Allocation by Style for Central Banks:
- Active – 66%
- Passive – 29%
- Factor – 5%
Equities Investment Management style in 2 years time – Sovereign Wealth Funds:
- More factor – 4%
- Morre passive – 13%
- More active – 52%
- No change – 31%
Fixed income Investment Management style in 2 years time – Sovereign Wealth Funds:
- More factor – 2%
- Morre passive – 14%
- More active – 47%
- No change – 37%
6) Central Banks Reserves & Gold
Expected to increase for reserves in next 2 years:
- Size – 64%
- Diversification – 47%
- Liquidity – 29%
- Duration – 9%
Enhancements to risk management framework in recent volatility & geopolitical events:
- Yes – 72%
- No material change – 28%
Changes to reserve adequacy approach due to events in last 3 years:
- Yes – 62%
- No material change – 38%
Total Foreign Exchange Reserves:
- 2022 – $11.04 trillion
- 2023 – $11.44 trillion
- 2024 – $11.47 trillion
Total Foreign Exchange Reserves breakdown in 2024:
- USD – 58%
- Euro – 20%
- Others – 14%
- Yen – 6%
- Renminbi – 2%
Timeline for new key currency to emerge:
- Next 5 years – 0%
- 6 to 10 years – 7%
- 11 to 20 years – 15%
- 21 to 50 years – 47%
- Unlikely – 37%
View on a currency to have greater global role in next 10 years:
- Chinese Renminbi – 82%
- Euro – 11%
- Indian Rupee – 3%
- Japanese Yen – 2%
- BRICs currency backed by gold – 2%
Gold as Reserves by Central Banks:
- Yes – 86%
- No – 14%
Gold Investments in next 3 years by Central Banks:
- Increase – 47%
- Same – 53%
Top 7 reasons for Gold investments in next 3 years by Central Banks:
- Safe haven during financial instability – 80%
- Concerns over geopolitical volatility – 63%
- Currency diversifier – 54%
- Concern over freezing of central bank assets – 39%
- Inflation protection – 35%
- High government debt levels – 15%
- Risk-adjusted returns – 15%
Top 4 Gold Investments by Central Banks:
- Physical gold held in own country – 66%
- Physical gold held in foreign central / bullion banks – 75%
- Gold ETFs – 16%
- Gold derivatives (Swaps / Futures) – 9%
7) Digital Assets
Invests in Digital Assets for Sovereign Wealth Funds:
- Yes – 11%
- No but may invest – 50%
- Will never invest – 39%
Invests in Digital Assets by Region for Sovereign Wealth Funds:
- Europe – 62%
- LATAM – 60%
- Africa – 57%
- Middle East – 56%
- APAC – 18%
- North America – 16%
Top 6 Roles digital assets can play:
- High risk / return asset – 59%
- Store of value – 46%
- Call option on future use for underlying technology – 35%
- Inflation hedge – 32%
- Hedge against fiat devaluation – 22%
- Medium of exchange – 16%
Top 10 Barriers to invest in digital assets for Sovereign Wealth Funds:
- Regulatory pressure / issues – 76%
- Volatility – 74%
- Transparency – 65%
- Due diligence – 48%
- Concerns over criminal / illicit activity – 48%
- Long-term returns – 46%
- Liquidity – 41%
- Lac of scale / low market cap – 33%
- Technological complexity – 33%
- Environmental concerns – 33%
Top 3 Digital assets to consider:
- Cryptocurrencies – 76%
- Stablecoins – 48%
- Tokenised securities – 17%
Central Bank Digital Currencies (CBDCs) for Central Banks:
- Launched – 4%
- Considering to launch – 20%
- Doing research – 63%
- Will not launch – 13%
Top 8 Benefits of Central Bank Digital Currencies (CBDCs) for Central Banks:
- Efficiency in payment system – 88%
- Faster / better cross border payments – 60%
- Safety of payment systems – 38%
- Enhanced financial inclusion – 36%
- Lower cost of cash management – 36%
- Improved monetary policy transmission – 33%
- Preventing illegal activity – 31%
- Proof of transaction – 24%
Top 5 Risks of Central Bank Digital Currencies (CBDCs) for Central Banks:
- Cybersecurity & privacy – 70%
- Disintermediation of commercial banks – 60%
- Technology / infrastructure challenges – 53%
- Scalability – 21%
- Uncertain impact on fiat currencies – 19%
5 Types of Sovereign Funds:
- Investment sovereigns – Investment sovereigns have no specific liabilities that they are intended to fund. This typically means this segment invests with a particularly long-time horizon and high tolerance for illiquid and alternative asset classes. Long investment return objectives tend to be high, reflecting an ability to capture additional return premia.
- Liability sovereigns – Liability sovereigns in contrast are intended to fund specific liabilities, liability sovereigns are sub-segmented into those which are already funding liabilities (current liability sovereigns) vs those where the liability funding requirement is still in the future (partial liability sovereigns). Liability sovereigns generally seek to match their portfolio with the duration of the liabilities they are funding. Those where funding requirements are still well into the future resemble investment sovereigns in their approach; those with significant current funding requirements tend to still have a diverse long-term portfolio but will be more liquid and higher yielding.
- Liquidity sovereigns – Liquidity sovereigns operate so they can act as a buffer in the event of economic shocks. They are most commonly located in emerging markets which are prone to exchange rate volatility and/or in resource-based economies which are highly exposed to fluctuations in commodity prices. Because of the priority placed on being able to deploy capital predictably and at short notice. Liquidity sovereigns invest with a much shorter time horizon and with a focus on liquidity ahead of returns.
- Development sovereigns – Development sovereigns are only partial portfolio investors. Their principle objective is to promote domestic economic growth rather than achieve an optimal risk/return portfolio trade-off. This is pursued by investing in strategic stakes in companies which make a significant contribution to the local economy to promote expansion and growth in employment. They pursue portfolio strategies with their other assets which are usually influenced by the size and characteristics of their strategic stakes.
- Central banks – Central banks have a range of domestic roles in their economy – banking to government, issuance of currency, setting of short-term interest rates, managing money supply, and oversight of the banking system. Central banks also have a range of external facing roles, including managing foreign exchange rate policy and operations, including payments for imports/receipts for exports and government overseas borrowings. Central banks hold substantial reserves to support those functions and ensure they are seen as credible. Those reserves have traditionally been invested with a priority on capital preservation and liquidity.
Invesco Global Sovereign Asset Management Study 2025
We conducted comprehensive interviews with 141 senior investment professionals, including chief investment officers, heads of asset classes, and portfolio strategists, from 83 sovereign wealth funds (SWFs) and 58 central banks. These institutions collectively manage approximately US$27 trillion in assets.
Invesco – Invesco Ltd. (Ticker NYSE: IVZ) is a global independent investment management firm dedicated to delivering an investment experience that helps people get more out of life. Our distinctive investment teams deliver a comprehensive range of active, passive and alternative investment capabilities. With offices in more than 20 countries, Invesco managed US$2 trillion in assets on behalf of clients worldwide as of June 30, 2024.
Caproasia Users
- Manage $20 million to $30 billion of assets
- Invest $3 million to $300 million
- Advise institutions, billionaires, UHNWs & HNWs
Caproasia Platforms | 11,000 Investors & Advisors
- Caproasia.com
- Caproasia Access
- Caproasia Events
- The Financial Centre | Find Services
- Membership
- Family Office Circle
- Professional Investor Circle
- Investor Relations Network
Monthly Roundtable & Networking
Family Office Programs
The 2026 Investment Day
- March - Hong Kong
- March - Singapore
- April - Hong Kong
- April - Singapore
- July - Hong Kong
- July - Singapore
- Sept- Hong Kong
- Sept - Singapore
- Oct- Hong Kong
- Nov - Singapore
- Visit: The Investment Day | Register: Click here
Caproasia Summits
- The Institutional Investor Summit
- The Investment / Alternatives Summit
- The Private Wealth Summit
- The Family Office Summit
- The CEO & Entrepreneur Summit
- The Capital Markets Summit
- The ESG / Sustainable Investment Summit
