One of Canada's largest institutional investors, the Investment Management Corporation of Ontario (IMCO), stated in its newly published annual world outlook report that it now views the Swiss franc, Japanese yen, and gold as potential substitutes for the US dollar. This reflects a reassessment by institutional investors of their confidence in the dollar's status as the "ultimate safe-haven currency."

Furthermore, the report mentioned that shifting fixed-income allocations toward shorter durations is another recommended approach. As one of Canada's largest pension and fund management organizations, IMCO currently manages approximately CAD 86 billion (about HKD 496.1 billion) in assets for public sector employees, government agencies, schools, and others.

The report noted that since former US President Donald Trump announced comprehensive tariff hikes last April, US Treasury yields have risen, yet the US dollar has simultaneously weakened. This phenomenon, which deviates from the traditional logic that higher yields equate to a stronger dollar, may indicate that investors no longer unconditionally regard the dollar as the primary safe haven during market turbulence.

For some global capital, the United States may no longer be perceived as a stable and predictable partner. However, an IMCO spokesperson added that this analysis reflects a strategic viewpoint and does not necessarily mean the fund has already made actual adjustments to its currency exposures.

Shifting fixed-income allocations toward shorter durations is another recommended method. The report indicated that an increasingly politicized Federal Reserve could potentially suppress short-term yields, while policy risks and uncertainty drive up the term premium on long-term debt, thereby pushing yields higher.

If tariff measures and a weaker dollar increase import costs, leading to broader inflationary effects, this could add further momentum to rising US yields. Additionally, the report suggested that investors could consider assets related to production and the real economy, including strategically significant sectors such as AI and energy-related infrastructure, technology, and healthcare.

As governments seek to enhance local production capacity and ensure supply chain security, investment opportunities may emerge in commodities, raw materials, energy, and other natural resource sectors. "Many such assets tend to perform relatively well during inflationary periods and can serve as potential supplements to other inflation-sensitive assets, such as real return bonds."