GEOPOLITICAL RISKS ARE INFLUENCING INVESTMENT PORTFOLIOS

🌍 Rising geopolitical uncertainty and persistent inflationary pressures are prompting major global investors to increase cash allocations within their portfolios, with greater emphasis on risk management and liquidity.

📊 According to a survey by Marsh Investments covering 430 asset owners with a combined USD 5.76 trillion in assets under management, 37.8% of respondents plan to increase their cash holdings over the next 12 months, compared with 9% in the previous year’s survey.

➡️ Higher cash allocations can provide greater flexibility to manage risk during periods of market volatility, maintain liquidity, and deploy capital quickly as new investment opportunities emerge.

📉 At the same time, investors are indicating plans to reduce exposure to U.S. and U.K. equities, while placing greater emphasis on balancing portfolio allocation, risk exposure, and liquidity.

🇲🇳✅UBIM monitors developments in international capital markets, including shifts in investor asset allocation, risk exposure, and liquidity preferences, and incorporates these market insights into its work on financing structures and investment solutions for Ulaanbaatar’s projects and programs.

Source: South China Morning Post