New research from State Street and the International Forum of Sovereign Wealth Funds (IFSWF) reveals that institutional investors became more risk-averse in 2021 than they have been at any time over the past two years, as they were faced with new risks as the world economy emerged from the long shadow cast by the COVID-19 pandemic.
According to State Street data, supported by inputs from IFSWF's members, institutional investors and sovereign wealth funds' capital flow decisions became more broad-based, with evidence of risk-off behaviour manifesting across investors’ equity, fixed income, foreign exchange and asset allocation decisions over recent months.