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Bailey McCann, Opalesque New York:

Global sovereign investor confidence is stable and they continue to pursue long-term investment goals through strategic asset allocation, according to the recently released Invesco Global Sovereign Asset Management Study. The study looks at 77 individual sovereign investors and reserve managers across the globe and representing 66% of sovereign assets and 25% of foreign reserves - totalling $8.96 trillion of assets.

"Many sovereign investors are now comfortable operating in an environment with limited new funding," said Alex Millar, head of EMEA sovereigns, Middle East and Africa institutional sales at Invesco. "Some have ceded assets to governments without cancelling long-term investments, while others have not been called upon at all for withdrawals over the last 12 months. Many of these institutions appear confident in their funding outlook and are increasing the importance of their investment objectives relative to their short-term liquidity needs."

In this environment, allocations to alternative asset classes continue to remain steady and real estate is taking on new importance. Sovereign investors have focused on increasing investments in infrastructure and private equity over the last two years; however, attitudes have changed in 2016, and for the first time fewer sovereign investors expect to increase allocations to these asset classes. Allocations to real estate have risen from 3.0% in 2012 to 6.5% currently (......................

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