- 61% of central banks surveyed by Invesco stated that US debt levels negatively affect the dollar's long-term position as a reserve asset.
- Sovereign wealth funds and central banks managing $29 trillion are pivoting to energy assets amid rising concerns about the dollar's status.
- The Invesco survey indicates a significant shift as sovereign funds move from public markets to private equity and infrastructure investments.
- Oil prices rose as renewed U.S.-Iran strikes revived supply concerns, with prices reaching $70.17 a barrel.
- The Invesco survey covered 90 sovereign wealth funds and 54 central banks, indicating a growing focus on diversification in investment portfolios.
- 80% of those polled believe that energy transition infrastructure is a credible investment for making portfolios more resilient.
- Concerns about the dollar's reserve status are widespread, with 29% of respondents predicting it will weaken in five years.
Sovereign wealth funds and central banks managing $29 trillion are increasingly shifting their focus to energy assets, driven by geopolitical tensions and concerns over the dollar's reserve status. An Invesco survey of 90 sovereign wealth funds and 54 central banks revealed that 61% of central banks believe U.S. debt levels negatively impact the dollar's long-term position as a reserve asset, a significant increase from 20% in 2024.236
The survey also indicated that 29% of respondents expect the dollar's reserve-currency status to weaken in five years, up from 12% in 2022. This shift is prompting a reassessment of investment strategies, with a net 17% of sovereign wealth funds planning to reduce exposure to listed equities, while 28% to 35% intend to increase holdings in private equity, private credit, and infrastructure.
Concerns about the dollar are widespread, with several institutions reviewing their reliance on U.S.-based custodians due to geopolitical tensions. The average allocation to infrastructure investments has nearly doubled to 9% between 2022 and 2025, reflecting a growing demand for assets that align with national security requirements. As one Middle Eastern fund noted, the current AI wave is best captured in private credit and infrastructure opportunities.8
Invesco's survey highlights a significant turn against equities, with 80% of those polled identifying energy transition infrastructure as a credible investment for portfolio resilience. This trend underscores the evolving landscape of global finance as sovereign wealth funds and central banks adapt to unprecedented geopolitical shifts.
“A recent Invesco survey reveals that 61% of central banks believe US debt levels negatively impact the dollar's long-term reserve status. This has prompted sovereign wealth funds managing $29 trillion to shift focus towards energy assets and private investments.”
Financial Times
