Sovereign wealth funds and central banks are turning to active fund management and investing in China to navigate global volatility, according to an Invesco survey. Despite concerns, the dollar remains the top reserve currency, but funds are eyeing Chinese tech assets with increasing interest due to FOMO.

Wealth funds made returns of 9.4% last year, but worries about market volatility, de-globalisation, climate change, and rising debt levels persist. Over 70% of central banks are concerned about rising U.S. debt impacting the dollar’s outlook, but most believe it will take over two decades for a credible alternative to emerge.

Private credit is a focus for funds seeking income and resilience, with 73% adopting it. Stablecoins, a type of cryptocurrency pegged to the dollar, are gaining interest, especially among emerging market funds. Despite this, bitcoin remains a more popular digital asset for investment.

Read more at Yahoo Finance: Wealth funds warm to active management – and China