Global Sovereign Investors Pivot to Energy as Dollar Concerns Mount

The latest Invesco survey of 90 sovereign wealth funds and 54 central banks reveals a pivot toward portfolios designed to withstand trade tariffs, supply chain disruptions, and regional conflicts. Roughly 80% of respondents identified energy security and transition infrastructure as their most credible defense against market instability. This appetite for real assets is further amplified by the massive power requirements of emerging AI infrastructure, which has seen sovereign fund allocations to infrastructure reach 9% as of 2026.

Deepening anxiety over U.S. fiscal health is reshaping institutional behavior. A significant 61% of central banks now view U.S. debt levels as a direct threat to the dollar’s reserve status, a sharp increase from the 20% recorded in 2024. Consequently, institutions are quietly reassessing their reliance on U.S.-based custodians and clearing houses. While some entities have already transitioned to non-U.S. custodial relationships to mitigate risks, others remain wary of the diplomatic fallout, with one respondent noting that such a shift could be interpreted by Washington as a hostile action. Amid this uncertainty, one-third of the surveyed institutions plan to increase their gold holdings to bolster portfolio resilience.