MILAN, Jul 9 (Class Editori) – According to Invesco Global Sovereign Asset Management Study, an in-depth yearly report exploring sovereign funds and central banks’ investment trends and performance, most sovereign investors are quite disenchanted when it comes to the European market. The study – conducted by directly interviewing 139 individual sovereign investors and central bank managers from all over the world – highlights a shift in investing interest toward the bond segment; the growing importance of China, as one of the most sough-after destinations; sovereign bond weak performance; and the ever-bigger role of the ESG.
Alex Millar, Head of EMEA Institutional Distribution Sales of Invesco, said: “Our study reveals that the sovereign investors and the central banks are getting ready for the end of the economic cycle, due to fall in two years time, and they are adopting more defensive approaches and diversifying their investment strategies. The sovereign investors have reduced allocations to actions in favor of bonds, as long as they can retain their growing trend when it comes to allocations in private markets, including direct investments in China and in the technological sector for the main sovereign investors”.
The shift toward China, when the commercial wars are having a negative impact on share markets, shows the sovereign investors’ ability in looking past the short-term geopolitical skirmish and in guiding the news agenda while capitalizing on core dynamics – in this case, the continuous maturation of the second biggest economy in the world. The quick development interesting the ESG implementation has been particularly remarkable, as the sovereign investors have been aiming at moving from “G” governance initiatives to “E” environmental focus.
(Source:Class Editori)
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