Most central banks worldwide have spent the last two years battling higher inflation with tighter monetary policy. Consequently, global inflation has shown signs of moderation, and policymakers – particularly in developed economies – are, to varying degrees, considering revisiting their interest rate policies.

The prospect of looser monetary conditions has stirred financial markets and helped global equity markets set new highs. Given these changing market conditions, how have global institutional investors and sovereign wealth funds positioned their portfolios for 2024? In this report, we uncover insights into how institutional investors and sovereign wealth funds implemented their capital flow and portfolio reallocation decisions over the past year as market conditions evolved.

The research is powered by our proprietary indicators of institutional investor flows and holdings derived from the anonymized and aggregated activity of institutional investors, representing more than US$40 trillion in assets. This data is contextualized by input from members of the International Forum of Sovereign Wealth Funds (IFSWF).