ASIAN sovereign investor confidence is stable this year despite continued market volatility and sustained low oil prices, said Invesco in its fourth annual "Global Sovereign Asset Management Study" released on Monday.
In fact, its Sovereign Confidence Index showed that overall confidence among Asian sovereign wealth funds increased from 7.5 in 2014 to 7.9 in 2016.
Said Terry Pan, Invesco's CEO of Greater China, Singapore, and Korea: "Though new funding globally has diminished somewhat, many sovereigns are now used to operating in such an environment. Despite a backdrop of increased volatility, either in financial markets, commodities or currencies, sovereigns have broadly expressed confidence both in their funding outlooks and position as long-term investors."
Invesco added that the US has overtaken the UK this year as the most attractive region for Asian sovereign investors. There is also an increased appetite for real estate investment to drive allocations towards alternatives.
The report is based on face-to-face interviews with 77 sovereign investors and reserve managers worldwide. Survey participants are responsible for 66 per cent of the world's sovereign assets and 25 per cent of its foreign reserves - totalling US$8.96 trillion.