- Survey covers 180 global institutional investors with portfolios ranging from $1B to $500B+
- 86% of portfolios include private market investments, with a strong focus on liquidity and risk management
- Technology investment prioritizes portfolio analytics (51%) and compliance reporting (48%)
The recent "Asset Owners in Focus: Global Asset Owner Peer Study 2025" released by Northern Trust (NTRS, Financial) sheds light on the evolving priorities of global asset owners. Surveying 180 institutional investors with assets under management ranging from $1 billion to over $500 billion, the study provides insights into current asset allocation strategies and operational efficiencies in the face of market challenges.
Key findings reveal that average portfolio allocations consist of 42% equities, 27% fixed income, and 13% private markets. Notably, 86% of portfolios feature private asset investments, underscoring a robust interest in alternative investment opportunities. Liquidity remains a significant concern, with 60% of asset owners emphasizing its growing importance and maintaining average cash allocations of 11%.
In the realm of private market investments, 21% of participants include cryptocurrencies and digital assets in their portfolios. The survey also highlights a shift towards outsourcing, with document management and regulatory reporting being the most outsourced functions at 49%, followed by trade execution and performance analytics at 45% each.
Regional differences are apparent, as asset owners in Europe, the Middle East, and Africa (EMEA) and Asia-Pacific (APAC) regions allocate less to equities and more to cash compared to their US counterparts. Investment in technology is prioritized, with 51% focusing on portfolio analytics tools and 48% on compliance and regulatory reporting enhancements.
Northern Trust's study underscores the critical role of technology in optimizing operations and managing risks, particularly liquidity risks, which are a top-three concern for 54% of respondents. As asset owners navigate an environment marked by economic and geopolitical uncertainties, the insights from this survey are invaluable for benchmarking strategies and enhancing decision-making capabilities.
