Invesco Survey: Sovereign Investors Shift Toward Energy Assets as Diversification Focus Grows

Sovereign wealth funds and central banks are increasingly allocating to energy-related assets and voicing concerns about the U.S. dollar, Invesco said in a survey released on Monday. According to Jin10, the survey covered 90 sovereign wealth funds and 54 central banks, representing $29 trillion in assets under management, and said investors are reassessing portfolios amid what it described as unprecedented geopolitical shifts. Invesco said respondents cited trade tariffs, shipping route closures, and the conflicts in Ukraine and the Middle East as key factors behind a stronger push for diversification and for portfolios that can absorb shocks while maintaining overall stability. About 80% of respondents said energy security and energy-transition infrastructure were the most reliable investments for improving portfolio resilience. Invesco added that infrastructure was expected to account for 9% of sovereign wealth fund assets by 2026. The report also said competition among companies to build energy-intensive artificial intelligence infrastructure has increased the appeal of these assets. Benjamin Jones, Invesco’s head of research, said investors are revisiting long-held assumptions about diversification in a world shaped by inflation shocks, geopolitical fragmentation, and higher market concentration, and are redesigning portfolios to withstand a wider range of outcomes.