Sovereign wealth funds and central banks shift to energy assets and curb dollar exposure

Sovereign wealth funds and central banks that together manage about $29 trillion are reshaping their portfolios in response to heightened geopolitical risk. An Invesco survey of 90 sovereign wealth funds and 54 central banks found that roughly 80 % view energy security and energy‑transition infrastructure as the most credible way to boost portfolio resilience, with infrastructure now accounting for about 9 % of sovereign wealth fund assets in 2026.

The same respondents expressed growing worries about the U.S. dollar. Sixty‑one percent said rising U.S. debt weakens the dollar’s long‑term reserve‑currency status, and 29 % expect the dollar’s dominance to decline over the next five years. Around one‑third of those surveyed intend to increase gold holdings, while a record‑high share of central banks plan to cut dollar allocations in the coming decade, according to a concurrent OMFIF survey.

Investors are also turning to real assets, liquidity and AI‑driven energy projects. The surveys note a move away from traditional bond‑equity diversification, greater interest in critical‑infrastructure and transport assets, and an accelerated adoption of artificial‑intelligence tools for risk modelling and data analysis.