Sovereign wealth funds and central banks managing $29 trillion in assets ‌are turning to energy assets, and raising concerns about the dollar, in a portfolio reassessment driven by unprecedented geopolitical shifts, according to an Invesco survey published on Monday.

The survey of 90 sovereign wealth funds and 54 central banks showed an increasing focus ​on diversification, and investment portfolios that can “take a hit and still hold it together” amid trade tariffs, closed ​shipping channels and wars in Ukraine and the Middle East.

Some 80% of those polled said energy ⁠security and energy transition infrastructure were the most credible investments for making their portfolios more resilient, and infrastructure ​reached 9% of sovereign wealth fund assets in 2026.

The race to build energy-hungry AI infrastructure added to the appeal, ​the report by the global investment management firm found.

“In a world of inflation shocks, geopolitical fragmentation and more concentrated markets, investors are rethinking old assumptions about diversification and redesigning portfolios to withstand a wider range of outcomes,” Invesco head of research ​Benjamin Jones said.

The positive bond-equity correlation in recent years has also ​eroded reliance on bonds for diversification, with more focusing on liquidity and real assets.

Concerns about the dollar ‌were “widespread ⁠and deepening,” and 61% of central banks polled also said that U.S. debt levels negatively impact the dollar’s long-term position as a reserve asset, up from 20% in 2024.

While the U.S.-Israeli war with Iran has helped lift the dollar 3% this year, analysts say U.S. policy uncertainty and high debt mean the currency could weaken over ​the long term.

The lack ​of a credible dollar ⁠alternative is likely to make any shift away from it incremental, but 29% of those in the Invesco survey said the dollar’s reserve-currency status will be weaker ​in five years, up from 12% in 2022.

Several institutions also reported reviewing their ​reliance on U.S.-based ⁠custodians, counterparties and clearing infrastructure due to geopolitical tensions, Invesco said.

One European central bank said it had already replaced its U.S. custodian. A Latin American central bank said it was setting up new non-U.S. custodial relationships to prepare ⁠for ​a “worst-case scenario.”

But one central bank respondent said any such move was ​fraught: “This act in and of itself could be interpreted as hostile by the U.S.”

One-third of those polled meanwhile said they intended to boost ​gold holdings as part of the diversification trend.