• Sovereign investors still attracted to the US but recent policy volatility has led to growing concerns over the impacts of a tariff war on inflation and increasing trade tensions
• There are both economic transition challenges and opportunities seen for China
• Private credit moving from a tactical allocation to a more strategic one for sovereigns, with infrastructure debt emerging as a key focus area

Dubai, UAE, 08 April 2025 – Despite increasing uncertainty in trade and geopolitics, sovereign investors remain optimistic about opportunities in the US and China, and are shifting their strategic allocation within fixed income in 2025, according to Invesco.