In a comprehensive survey conducted by Northern Trust, insights were gathered from 180 institutional investment plans globally, encompassing portfolios ranging from $1 billion to over $500 billion. This initiative drew responses from senior executives at various institutions including pension funds, outsourced chief financial officers, multi-managers, family offices, sovereign wealth funds, endowments, and more, across the Americas, EMEA, and APAC regions.
With a growing emphasis on alternative investments, Northern Trust’s report titled “Asset Owners in Focus: Global Asset Owner Peer Study 2025” highlights how asset owners are navigating increased market volatility, changing regulatory frameworks, and rapid technological advancement.
Among the findings, it was revealed that 21% of participants in private markets are investing in cryptocurrencies and other digital assets. Additionally, private debt has emerged as a significant component of many institutional portfolios, alongside real estate, private credit, and direct lending, which continue to be highly favored.
The survey indicates that a substantial 86% of respondents are engaged in private markets, while 68% invest in hedge funds and other alternative strategies. Equity investments are favored by 42% of respondents, and 27% hold fixed income assets. Despite the challenges, the appetite for alternative investments is on the rise, with private market assets accounting for an average of 13% of institutional portfolios and 86% of portfolios containing some form of private assets.
However, the survey also identifies various risks that asset owners face, including fluctuations in interest rates, geopolitical tensions, and domestic political challenges. Fee structures and climate change are also recognized as significant concerns. Notably, 54% of respondents deemed liquidity risk to be the most critical risk metric.
Melanie Pickett, head of asset servicing for the Americas at Northern Trust, commented that today’s asset owners are adeptly managing complex portfolios amidst economic and geopolitical uncertainty. They must navigate investment strategies while keeping operational costs in check and adhering to regulatory guidelines. She emphasized that the report provides asset owners in North America with crucial insights into the current market trends and peer strategies, assisting them in benchmarking their own approaches.
James Wright, head of asset owners for EMEA at Northern Trust, remarked that asset owners in his region increasingly value the role of technology in mitigating operational and investment risks. He noted that as regulatory demands intensify, there is a growing need for enhanced data management, prompting asset owners to refine their decision-making capabilities and adapt to new regulatory environments.
Angelo Calvitto, head of Asia-Pacific at Northern Trust, added that technology adoption is being utilized to enhance operational efficiency. Many asset owners are partnering with service providers to scale their operations and hone in on essential activities, particularly in the administration of alternative investments. This trend reflects the region’s commitment to boosting technological advancements to drive productivity, with outsourcing playing a pivotal role in simplifying processes and improving overall operational performance.