{"id":559117,"date":"2026-06-29T00:31:12","date_gmt":"2026-06-29T00:31:12","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/559117\/"},"modified":"2026-06-29T00:31:12","modified_gmt":"2026-06-29T00:31:12","slug":"sovereign-investors-with-us29-trillion-pivot-to-energy-assets-flag-dollar-fears","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/559117\/","title":{"rendered":"Sovereign investors with US$29 trillion pivot to energy assets, flag dollar fears"},"content":{"rendered":"

Published Mon, Jun 29, 2026 \u00b7 07:27 AM<\/p>\n

[LONDON] Sovereign wealth funds and central banks managing US$29 trillion in assets are turning to energy assets, and raising concerns about the US dollar, in a portfolio reassessment driven by unprecedented geopolitical shifts, according to an Invesco survey published on Monday (Jun 29).<\/p>\n

The survey of 90 sovereign wealth funds and 54 central banks showed an increasing focus on diversification, and investment portfolios that can \u201ctake a hit and still hold it together\u201d amid trade tariffs, closed shipping channels and wars in Ukraine and the Middle East.<\/p>\n

Some 80 per cent of those polled said energy security and energy transition infrastructure were the most credible investments for making their portfolios more resilient, and infrastructure reached 9 per cent of sovereign wealth fund assets in 2026.<\/p>\n

The race to build energy-hungry AI infrastructure<\/a> added to the appeal, the report by the global investment management firm found.<\/p>\n

\u201cIn a world of inflation shocks, geopolitical fragmentation and more concentrated markets, investors are rethinking old assumptions about diversification and redesigning portfolios to withstand a wider range of outcomes,\u201d Invesco head of research Benjamin Jones said.<\/p>\n

\u201cResilience is becoming a hard requirement, not a nice-to-have.\u201d<\/p>\n

The positive bond-equity correlation in recent years has also eroded reliance on bonds for diversification, with more focusing on liquidity and real assets.<\/p>\n

US dollar, debt, and risk<\/p>\n

Concerns about the US dollar were \u201cwidespread and deepening\u201d, and 61 per cent of central banks polled also said that US debt levels negatively impact the US dollar\u2019s long-term position as a reserve asset, up from 20 per cent in 2024.<\/p>\n

While the US-Israeli war with Iran<\/a> has helped lift the US dollar 3 per cent this year, analysts say US policy uncertainty and high debt mean the currency could weaken over the long term.<\/p>\n

SEE ALSO<\/p>\n

\"Gold\"Fed<\/a><\/p>\n

The lack of a credible US dollar alternative is likely to make any shift away from it incremental, but 29 per cent of those in the Invesco survey said the US dollar\u2019s reserve-currency status will be weaker in five years, up from 12 per cent in 2022.<\/p>\n

Several institutions also reported reviewing their reliance on US-based custodians, counterparties and clearing infrastructure due to geopolitical tensions, Invesco said.<\/p>\n

One European central bank said it had already replaced its US custodian. A Latin American central bank said it was setting up new non-US custodial relationships to prepare for a \u201cworst-case scenario\u201d.<\/p>\n

But one central bank respondent said any such move was fraught: \u201cThis act in and of itself could be interpreted as hostile by the US\u201d.<\/p>\n

One-third of those polled meanwhile said they intended to boost gold holdings as part of the diversification trend. REUTERS<\/p>\n","protected":false},"excerpt":{"rendered":"Published Mon, Jun 29, 2026 \u00b7 07:27 AM [LONDON] Sovereign wealth funds and central banks managing US$29 trillion…\n","protected":false},"author":2,"featured_media":559118,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[174],"tags":[289,79,2813,179,18,1742,19,17,18245,2708],"class_list":["post-559117","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-artificial-intelligence","tag-business","tag-central-banks","tag-economy","tag-eire","tag-gold","tag-ie","tag-ireland","tag-sovereign-wealth-funds","tag-us-dollar"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ie\/116830581321407868","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/559117","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=559117"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/559117\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/559118"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=559117"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=559117"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=559117"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}