Invesco has unveiled its eighth annual Global Sovereign Asset Management Study, which identifies five themes based on data collected from 139 chief investment officers, heads of asset classes and senior portfolio strategists, working within 83 sovereign funds and 56 central banks.
Together those surveyed represent a total of $19 trillion in assets under management.
According to the report, for sovereigns with dry powder, the market collapse in early 2020 was an unprecedented buying opportunity. As custodians of long-term capital, most also benefit from the lack of an imperative to sell to meet withdrawals. In infrastructure, sovereigns are targeting electricity generation and transmission, and communications sectors. The report noted that electricity projects that help countries transition away from fossil fuels are seen as a way of meeting ESG objectives.
The report also noted sovereigns are experiencing the greatest capability gaps in the areas of pri