{"id":98754,"date":"2025-07-15T00:00:00","date_gmt":"2025-07-15T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/ksa\/2025\/07\/15\/wealth-funds-and-central-banks-are-shifting-gears-to-navigate-an-unpredictable-world\/"},"modified":"2025-07-15T00:00:00","modified_gmt":"2025-07-15T00:00:00","slug":"wealth-funds-and-central-banks-are-shifting-gears-to-navigate-an-unpredictable-world","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/ksa\/2025\/07\/15\/wealth-funds-and-central-banks-are-shifting-gears-to-navigate-an-unpredictable-world\/","title":{"rendered":"Wealth funds and central banks are shifting gears to navigate an unpredictable world"},"content":{"rendered":"

Times have changed, and the market is adapting. <\/strong>Sovereign wealth funds and central banks are altering their approaches in a bid to navigate the volatile global environment, Reuters<\/a> reported, citing a survey by US-based global investment firm Invesco.<\/p>\n

Investors are getting worried: <\/strong>The survey \u2014 taking place between January and March before Trump\u2019s \u201cLiberation Day\u201d announcements \u2014 still showed a surge in concerns regarding market volatility and increased protectionism. Further down the road, climate change and higher levels of sovereign debt add to investors\u2019 worries over the next 10 years.<\/p>\n

Active management is the new trend:<\/strong> Funds managing over USD 100 bn in assets are increasingly moving to active management of their portfolios to weather the storm. While passive management \u2014 following weighted indices and portfolios \u2014 is traditionally more preferred as it seems to deliver better results, it needs predictable market conditions, which is \u201cno longer the case,\u201d Invesco\u2019s head of official institutions Rod Ringrow told the newswire.<\/p>\n

China is grabbing attention too: <\/strong>About 60% of wealth funds are planning to invest in Chinese assets, especially the tech market, in the next five years, with the \u201cstrategic urgency they once directed toward Silicon Valley,\u201d according to the survey. <\/p>\n

Alternative sources of income include private credit<\/strong>, with half of the funds actively increasing their allocations. <\/strong>Stablecoins \u2014 crypto pegged to USD and other currencies \u2014 are also seeing growing interest, especially among funds in emerging markets.<\/p>\n

ALSO- Two thirds of the 58 central banks surveyed said they want larger, more <\/strong>diversified reserves<\/strong> to prepare for what is to come. Over 70% expressed concerns over US debt levels negatively affecting the USD over the long term.<\/p>\n

BUT- Don\u2019t expect the USD to weaken anytime soon.<\/strong> Some 78% expect the USD to maintain its strength for at least two more decades, until a credible alternative can rise to butt heads with the world\u2019s reserve currency.<\/p>\n

ALSO FROM PLANET FINANCE-<\/p>\n