Article

Invesco Global Sovereign Asset Management Study 2021

Invesco
Invesco Global Sovereign Asset Management Study 2021

With Covid-19 top of mind, impacting both operations and investment strategies, the impact of the ongoing pandemic is the major theme running throughout our sovereign study. This includes an examination of adjustments made in response to the crisis and the impact on long-term trends, including rising allocations to illiquid private markets and interest in China.

Our study covers 141 institutions from all over the world, and paints the clearest picture yet of the global state of the market, and what the future of sovereign wealth could look like.

We spoke face to face (video) with chief investment officers, portfolio strategists and heads of asset classes at 82 Sovereign funds and 59 central banks, representing USD19 trillion.* The study unearthed some unexpected perspectives and findings that should spark debate on the best ways forward for our industry.

Explore five key themes:
  1. Liquidity in focus as Covid-19 leads sovereigns to face drawdowns and double cash reserves
  2. Pandemic catalyses ESG adoption while impact investments grow in importance
  3. Sovereigns return to China as Covid-19 threat abates, though geopolitical risks remain
  4. Real estate still on solid ground, with climate change risk the primary concern
  5. Central banks refocus on risk with larger, more diversified and more liquid reserves
Inform your thinking

This is a one-of-a-kind study thanks to the breadth of sovereigns we talked to and the depth of data collected. Visit our Invesco Global Sovereign Asset Management Study microsite today and hear from the people shaping our industry’s future. The microsite also features related insights and previous years’ studies.

Explore

Footnotes

  • * Invesco Global Sovereign Asset Management Study as at 31 March 2021.

    [Visit the microsite]

Investment risks

  • The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested.

Important information

  • This document is intended only for Professional Clients and Financial Advisers in Continental Europe (as defined below); for Qualified Investors in Switzerland; for Professional Clients in Dubai, Jersey, Guernsey, Isle of Man, Ireland and the UK, for Institutional Investors in the United States and Australia, for Institutional Investors and/or Accredited Investors in Singapore, for Professional Investors only in Hong Kong, for Qualified Institutional Investors, pension funds and distributing companies in Japan; for Wholesale Investors (as defined in the Financial Markets Conduct Act) in New Zealand, for accredited investors as defined under National Instrument 45–106 in Canada, for certain specific Qualified Institutions/Sophisticated Investors only in Taiwan and for one-on-one

    use with Institutional Investors in Bermuda, Chile, Panama and Peru.

    Issuing infomation

    For the distribution of this document, Continental Europe is defined as Austria, Belgium, France, Finland, Greece, Luxembourg, Norway, Portugal, Denmark, Germany, Italy, the Netherlands, Spain, Sweden and Switzerland.

    This document is for information purposes only and is not an offering.

    It is not intended for and should not be distributed to, or relied upon by members of the public. Circulation, disclosure, or dissemination of all or any part of this material to any unauthorised persons is prohibited.

    The document contains general information only and does not take into account individual objectives, taxation position or financial needs. Nor does this constitute a recommendation of the suitability of any investment strategy for a particular investor. This is not an invitation to subscribe

    for shares in a fund nor is it to be construed as an offer to buy or sell any financial instruments. While great care has been taken to ensure that the information contained herein is accurate, no responsibility can be accepted for any errors, mistakes or omissions or for any action taken

    in reliance thereon. You may only reproduce, circulate and use this document (or any part of it) with the consent of Invesco.

    All data provided by Invesco as at 31 March 2021 unless otherwise stated.

    Australia

    This document has been prepared only for those persons to whom Invesco has provided it. It should not be relied upon by anyone else.

    Information contained in this document may not have been prepared or tailored for an Australian audience and does not constitute an offer of a financial product in Australia.

    You should note that this information:

    • May contain references to amounts which are not in local currencies.

    • May contain financial information which is not prepared in accordance with Australian law or practices.

    • May not address risks associated with investment in foreign currency denominated investments; & does not address Australian tax issues.

    Hong Kong

    This document is provided to Professional Investors in Hong Kong only (as defined in the Hong Kong Securities and Futures Ordinance and the Securities and Futures (Professional Investor) Rules).

    Singapore

    This document may not be circulated or distributed, whether directly or indirectly, to persons in Singapore other than (i) to an institutional investor under Section 304 of the SFA, (ii) to a relevant person pursuant to Section 305(1), or any person pursuant to Section 305(2), and in accordance with the conditions specified in Section 305 of the SFA, or (iii) otherwise pursuant to, and in accordance with the conditions of, any other applicable provision of the SFA.

    New Zealand

    This document is issued only to wholesale investors in New Zealand to whom disclosure is not required under Part 3 of the Financial Markets Conduct Act. This document has been prepared only for those persons to whom it has been provided by Invesco. It should not be relied upon

    by anyone else and must not be distributed to members of the public in New Zealand. Information contained in this document may not have been prepared or tailored for a New Zealand audience. You may only reproduce, circulate and use this document(or any part of it) with the consent of Invesco. This document does not constitute and should not be construed as an offer of, invitation or proposal to make an offer for, recommendation to apply for, an opinion or guidance on Interests

    to members of the public in New Zealand. Applications or any requests for information from persons who are members of the public in New Zealand will not be accepted.

    This document is issued in:

    Australia by Invesco Australia Limited (ABN 48 001693 232), Level 26, 333 Collins Street, Melbourne, Victoria, 3000, Australia, which holds an Australian Financial Services Licence number 239916.

    Austria and Germany by Invesco Asset Management Deutschland GmbH, An der Welle 5, 60322 Frankfurt am Main, Germany.

    Belgium, France, Finland, Greece, Luxembourg, Norway, Portugal, Italy, the Netherlands, Spain, Sweden and Denmark, by Invesco Management S.A., President Building, 37A Avenue JF Kennedy, L-1855 Luxembourg, regulated by the Commission de Surveillance du Secteur Financier, Luxembourg.

    Canada by Invesco Canada Ltd., 120 Bloor Street East, Suite 700, Toronto, Ontario, M4W 15140.

    Dubai by Invesco Asset Management Limited, Po Box 506599, DIFC Precinct Building No 4, Level 3, Office 305, Dubai, United Arab Emirates. Regulated by the Dubai Financial Services Authority.

    Hong Kong by Invesco Hong Kong Limited 景順投資管理有限公司, 41/F, Champion Tower, Three Garden Road, Central, Hong Kong.

    The Isle of Man, Jersey, Guernsey, Ireland and the UK by Invesco Asset Management Limited, Perpetual Park, Perpetual Park Drive, Henley-on-Thames, Oxfordshire RG9 1HH. Authorised and regulated by the Financial Conduct Authority.

    Japan by Invesco Asset Management (Japan) Limited, Roppongi Hills Mori Tower 14F, 6–10–1 Roppongi, Minato-ku, Tokyo 106–6114; Registration Number: The Director-General of Kanto Local Finance Bureau (Kinsho) 306; Member of the Investment Trusts Association, Japan and the

    Japan Investment Advisers Association.

    New Zealand by Invesco Australia Limited (ABN 48 001 693 232), Level 26, 333 Collins Street, Melbourne, Victoria, 3000, Australia, which holds an Australian Financial Services Licence number 239916.

    Singapore by Invesco Asset Management Singapore Ltd, 9 Raffles Place, #18–01 Republic Plaza, Singapore 048619. Switzerland by Invesco Asset Management (Schweiz) AG, Talacker 34,

    CH-8001 Zurich, Switzerland.

    Taiwan by Invesco Taiwan Limited, 22F, No.1, Songzhi Road, Taipei 11047, Taiwan (0800–045– 066). Invesco Taiwan Limited is operated and managed independently.

    The United States of America by Invesco Advisers, Inc., Two Peachtree Pointe, 1555 Peachtree Street, N.W., Suite 1800, Atlanta, Georgia 30309, US.