If 2024 was the year of elections, with half of the global population participating in national polls, 2025 is likely to be the year in which the outcomes will be felt. In particular, the re-election of President Trump in the United States and the policies of the new US administration present an uncertain backdrop for markets with the potential to transform the global landscape for international trade and geopolitical risk. This uncertainty is likely to significantly impact financial markets, with investors facing the prospect of heightened market volatility and potential for divergence in asset markets, severely testing the resilience of institutional portfolios.

But how have global institutional investors and sovereign wealth funds positioned their portfolios for the disruptive outlook for 2025? This report reveals 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 State Street’s proprietary indicators of institutional investor flows and holdings derived from the anonymized and aggregated activity of institutional investors, representing more than US$46 trillion in assets.¹ This data is contextualized by input from members of the International Forum of Sovereign Wealth Funds (IFSWF).