In addition,
Sovereign funds rely active management:
The world sovereign funds are turning to active management. Nevertheless, increasing their investments in China, while central banks diversify their reserves in order to better resist a global volatile environment, reveals a survey conducted by Invesco with sovereign funds and central banks managing $ 27,000 billion in active ingredients.
Despite everything. Nevertheless, the dollar remains undisputed: the majority of central banks estimate that it will take two decades – if it happens one day – so that it loses its place as a first reserve currency, despite increasing concerns.
“The institutions holding more than $ 100 billion – so very large institutions – are the most interest in turning to more active management. Additionally, Nevertheless, ” said Rod Ringrow, head of official institutions at Investco.
While funds favored passive management in predictable markets, “this is no longer the case today,” he sovereign funds rely active management added. Moreover, “I think that sums up the whole approach … However, in this return to active management. »»
On average, sovereign funds recorded a yield of 9.4 % last year, the second best performance in the history of the survey.
Nevertheless. market volatility and concerns related to demondialization have intensified: over a ten -year horizon, the main concerns relate to climate change and the increase in sovereign debt levels.
More than 70 % of the 58 central banks interviewed believe that the increase in American debt is harming. the long -term prospects of the dollar. Two thirds of them seek to build larger and diversified reserves to manage volatility.
However, 78 % believe that it will take more than twenty years before an alternative credible to the greenback emerges. This figure was 58 % last year. while only 11 % of central banks now consider that the euro is sovereign funds rely active management gaining ground, compared to 20 % the previous year.
China: the fear of missing the mark
The survey was carried out between January. March – before the customs of customs duties of the American president Donald Trump during the “Liberation Day” and at the height of the enthusiasm around the emergence of Deepseek Ai in China.
Sovereign funds note a renewed major interest in Chinese assets. almost 60 % of them providing for increasing their exposure on this market over the next five years, especially in the technological sector.
This figure increases to 73 % in North America, despite the deterioration of Sino-American relations, while in Europe, it only amounts to 13 %.
According to the survey. sovereign funds now tackle the Chinese innovation sectors with “the strategic urgency they once reserved for Silicon Valley”.
“There is a kind of Fomo. ” explains Ringrow, that is to say the fear of sovereign funds rely active management missing an opportunity, with this feeling: “I must be in China now”, while the country stands out as a world leader in semiconductors, the cloud, artificial intelligence, electric vehicles and renewable energies.
Private credit is also a priority for funds in search of alternative sources of income and resilience. It is now adopted by 73 % of sovereign funds, compared to 65 % last year, and half of them actively increase their allowances.
“This represents one of the most striking trends in allocation of sovereign assets,” said the report.
The growing interest. especially among the sovereign funds of emerging markets, is also focused on stablecoins – a category of cryptocurrencies generally indexed to the parity dollar 1: 1.
Almost half of the funds say they are inclined to invest in the stablecoins. even if this proportion remains lower than that of Bitcoin, which attracts 75 % of respondents.
Sovereign funds rely sovereign funds rely active management active management
Further reading: A strike at La Sépaq for the construction holidays? – The Xpeng G6 and G9 disembark in France, first deliveries expected in September – Israel: how the country at war broke records on the financial markets – Euromillions: a winner of one million euros sought in Essonne, the FDJ appeals before the sum is lost – Artificial intelligence: Duolingo revolts users.
