“This move towards risk assets is more about the periphery of the portfolio being used as separate alpha drivers,” he said.
The survey found sovereign portfolios are overweight to emerging market infrastructure, relative to emerging markets generally, while total sovereign portfolios are overweight to developed market real estate compared to developed markets generally.
“However, for both infrastructure and real estate investments, the biggest challenge for sovereign investors is sourcing deals. This is hardest in infrastructure, and as a result, this year’s study highlights accelerated growth in collaboration between sovereign investors to source these deals,” Invesco said.
Tolchard said the drive for infrastructure project shad also seen the US replace the United Kingdom as the most attractive market from a sovereign investor perspective in general.
In the US there a sense that with ‘Build America initiative’ they are more keen to interact with sovereign investors than they were,” he said.
