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But
while 58.3% of respondents to the poll by International Forum of
Sovereign Wealth Funds (IFSWF) and Invesco expected a U-shaped
rebound, most appeared to agree there would be a longer period
of slower growth ahead, reflecting uncertainties about factors
such as fresh waves of infections and government support
packages.
A total of 29.2% of respondents said they expected a W-shaped
recovery. Only 8.3% foresaw a V-shaped one.
The survey of 24 IFSWF members was completed last month.
More than 60% of those responding believed that developed
markets were best positioned to return to pre-COVID trend growth
after the pandemic-induced recession. Fewer than half expected
emerging markets to recover best.
Still, respondents backed China as the best-placed major economy
to recover. That probably reflected an expectation that China
was hit by the pandemic first and had generally handled it
better, its economy may be more responsive to government
stimulus efforts, IFSWF and Invesco said.
About a third of respondents expected the Chinese yuan to raise
its share of global official foreign-exchange reserves, as well
as its share in trade invoicing.
A total of 86% of those surveyed felt China would continue to
open its economy, enabling freer trade and investment
opportunities.
But sovereign investors retained their faith in U.S. dollar
assets -- 71% agreed the dollar would offer the most attractive
investment destination for equity and 58% believed
dollar-denominated bonds would be the best-performing debt
securities.
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