Global survey finds institutional investors are focused on risk avoidance
The current surge in geopolitical tensions and economic uncertainty, with a shifting market backdrop, has institutional investors tightening their control on investments.
The new Schroders’ Global Investor Insights Survey draws on responses from nearly 1,000 institutional investors and wealth managers overseeing US$67 trillion in assets, and the data signals a recalibration of strategy to mitigate elevated volatility.
Four in five respondents (80%) say they are somewhat or significantly more likely to increase their exposure to actively managed investment strategies in the next 12 months.
Portfolio resilience has surged to the top of the priority list, selected by 55% of investors and outpacing traditional return generation goals. Of those prioritising resilience, a notable 82% are increasing their reliance on active managers, highlighting a hands-on approach during uncertain times.
The fallout from wide-ranging trade tariffs, cited by 63% as the leading macroeconomic concern, appears to have accelerated the strategic shift.
Johanna Kyrklund, Schroders’ Group CIO, notes that investors are recognising the limitations of passive strategies in fragmented and inflation-sensitive markets.
“Resilience now tops the investment agenda,” she says. “Active strategies provide the control investors need to manage complexity, create portfolio resilience and seize opportunities.”
That opportunity-hunting mindset is evident across both public and private markets and public equities (46%) and private equity (45%) are seen as the most promising vehicles for return generation.
More than half of investors favour active strategies in public equities, compared to just 10% for passive. In private equity, small-to-mid cap buyouts are drawing particular interest for their growth potential and insulation from global trade tensions.
The survey also highlights a rethinking of income strategies and rather than relying solely on traditional fixed income, investors are leaning into private debt and credit alternatives (PDCA).
Nearly half (44%) of respondents identified PDCA as their top income source over the next year, with securitised products and infrastructure debt ranking highly among both wealth managers and institutional players.
As allocations evolve, the message is clear: active management is no longer a tactical choice, it’s a strategic imperative.
