Gold is also favoured as inflation hedge, with a significant proportion of central banks expecting to buy more of the precious metal over the next three years, the report said.
The world’s sovereign investors are seeking to boost investment in bonds as yields rise, while a freeze on Russian assets has increased their demand for gold, Invesco said in an annual report.
The survey covering 85 sovereign wealth funds and 57 central banks collectively managing about US$21 trillion in assets showed that while inflation remains the most significant risk, many now intend to increase bond allocations, especially emerging-market and high-yield.
