IslamicFinance.de

Invesco has released its fifth Invesco Global Sovereign Asset Management Study. The study was conducted amongst 97 individual sovereign investors and asked them to rate the importance of economic and geopolitical factors on their investment strategies. Middle East and other sovereign investors see low interest rates as the greatest tactical asset allocation factor. Brexit and the US election results are expected to grow in importance for future allocations, as the implications of political shifts on investment performance becomes clearer. Sovereign investors have ranked the US as the most attractive market. However, long term confidence is still restricted by concerns about growing protectionism limiting access for foreign sovereigns. The UK saw the biggest drop in attractiveness and Continental Europe's attractiveness has also fallen. However, Germany stands out from its European neighbours because of its perceived safe haven status. Despite target return gaps increasingly widening, geo-political uncertainty is causing sovereign investors to make fewer allocation changes than at any point in the last five years.