Investment Strategy of Sovereign Wealth Funds

Sovereign wealth funds (SWFs) are crucial to many countries' financial strategies. They invest for various purposes, including stabilizing the economy, saving for future generations, and achieving better returns on national savings. One of the prominent characteristics of SWFs is their investment horizon, often extending over a long period. This characteristic impacts their asset allocation decisions.

Consider a scenario where a sovereign wealth fund aims to achieve both capital preservation and a moderate growth in asset value over a long-term horizon. Given this focus, which of the following asset classes would likely be a core component of this SWF's investment strategy?