Sovereign wealth funds and central banks collectively managing roughly $29 trillion in assets are increasingly pivoting toward energy investments while raising fresh concerns about the long-term strength of the US dollar, according to a new survey published by global investment manager Invesco. The findings reflect a broader reassessment of investment strategy among the world's largest public investors as they brace for an increasingly unpredictable geopolitical landscape.
The survey, which polled 90 sovereign wealth funds and 54 central banks, found a growing emphasis on building portfolios that can "take a hit and still hold it together" amid ongoing trade tariffs, disrupted shipping routes, and conflicts in both Ukraine and the Middle East. Roughly 80% of respondents identified energy security and energy transition infrastructure as the most credible investments for strengthening portfolio resilience, with infrastructure now accounting for about 9% of total sovereign wealth fund assets in 2026.
AI Infrastructure Boom Adds to Energy Appeal
The report noted that the global race to build energy-intensive AI infrastructure — including data centers and computing facilities — has further amplified investor appetite for energy assets. As demand for electricity tied to artificial intelligence continues to surge, sovereign investors appear to be positioning themselves early to capture long-term value in power generation, renewables, and related infrastructure projects.
Mounting Concerns Over the Dollar's Reserve Status
Alongside the energy pivot, the survey revealed growing unease among sovereign investors about the dollar's long-term role as the world's primary reserve currency. According to the findings, 29% of respondents believe the dollar's reserve-currency status will be weaker in five years, a sharp rise from just 12% in 2022. Roughly 61% of central banks surveyed cited rising US debt levels as a negative factor weighing on the currency's long-term outlook.
In response, some institutions are taking concrete steps to reduce reliance on US-based financial infrastructure. The survey noted that several central banks have begun reviewing or replacing their reliance on American custodians, counterparties, and clearing systems — with one European central bank confirming it had already switched custodians, while a Latin American central bank said it was establishing non-US custodial relationships to prepare for a "worst-case scenario."
Gold Gains Favor as a Hedge
Diversification efforts also extended to traditional safe-haven assets, with around one-third of surveyed institutions saying they plan to increase their gold holdings as part of broader efforts to hedge against both dollar risk and geopolitical fragmentation. Notably, the survey found little appetite among sovereign investors for digital assets like Bitcoin, suggesting that regulatory uncertainty continues to limit institutional adoption of cryptocurrencies at the sovereign level.
For more details on the full survey findings and methodology, readers can refer to the original reporting from Reuters, which first covered the Invesco report.
What This Means for Global Markets
The findings underscore a broader structural shift in how the world's largest public investors are approaching risk. As geopolitical tensions persist and energy demand continues to climb alongside the AI boom, sovereign wealth funds and central banks appear to be recalibrating their portfolios for a more fragmented, multipolar financial order — one in which energy security and currency diversification play an increasingly central role.