Sovereign Wealth Fund Investment Reallocation Strategy

Imagine you are a senior financial advisor for a sovereign wealth fund (SWF) that is considering a significant reallocation of its investment portfolio in light of recent global economic changes, including rising inflation rates, geopolitical tensions, and sustainable investing trends. Outline a comprehensive strategy for this reallocation process.

In your response, address the following key areas: identify the rationale behind the reallocation, key asset classes to consider for both growth and stability, and how the fund can align its investment strategy with its long-term objectives. Additionally, discuss how external factors such as regulatory changes or shifts in the financial landscape could impact your strategy, and propose methods for ongoing risk assessment and performance evaluation throughout the reallocation process.