Sovereign wealth funds are taking a more active investment stance to counter low returns from traditional asset classes, such as investment grade bonds and developed equity markets, Patrick Thomson, head of sovereign wealth at J.P. Morgan Asset Management, said. The result is a switch from a traditionally passive approach to investments in real estate and other alternative opportunities.

On his way to Davos, Thomson said: "There is already an implicit requirement to maximise returns over the long term. However, it is important to understand that this continued need to search for yield has contributed to them actively looking for more diversified sources of income."