In a global survey of 180 institutional plans with investment portfolios ranging from $1 billion to over $500 billion, Northern Trust gathered responses from senior leaders at pension funds, outsourced chief financial officers and multi-managers, family offices, sovereign wealth funds, endowments, and other institutions across the Americas, Emea and Apac.
Amid an increased focus on alternative investments, Northern Trust’s ‘Asset Owners in Focus: Global Asset Owner Peer Study 2025’ reveals how asset owners are contending with rising market volatility, evolving regulations, and accelerating technological changes.
A noteworthy statistic that was unearthed is that cryptocurrencies and other digital assets are invested in by 21% of those that allocate to private markets. Further, private debt has become a “mainstay” across a number of institutional portfolio. Real estate, private credit and direct lending also remain the most popular categories.
86% of respondents invest in private markets, 68% invest in hedge funds, absolute return investments and other diversifiers, 42% favour equities and 27%, fixed income. Despite this, allocations into alternative investments are growing. Private market assets make up 13% of the average portfolio, and 86% of portfolios have some investment in private assets.
The survey also reiterates that interest rate changes, geopolitical and domestic political instability continue to be investment challenges, closely followed by fees and climate change. However, liquidity risk continues to be ranked as the most important risk metric, a top three concern by 54%.
Melanie Pickett, head of asset servicing, Americas at Northern Trust, says that asset owners of today are maintaining “sophisticated portfolios in a time marked by economic and geopolitical uncertainty – and must execute their investment strategies while efficiently managing costs and navigating the regulatory environment. Our data offers asset owners in North America valuable insights into their peers’ current priorities and trends shaping the market. These insights can help investment and operations leaders benchmark their strategies and understand where peers are focusing resources as they chart a course for their own organisations.”
James Wright, head of asset owners, EMEA at Northern Trust, adds that in the region he looks after, asset owners are “increasingly recognising the value of technology in addressing both operational and investment risk.” He continues: “As regulatory pressures rise and the need for more robust data management grows, asset owners are looking to strengthen their decision-making capabilities and adapt to evolving regulatory landscapes. This shift is reflected in how asset owners are integrating technology to optimise operations and manage risk more effectively.”
Angelo Calvitto, head of Asia-Pacific at Northern Trust, concludes by also saying that technology adoption is being leveraged to drive operational efficiency. “Many asset owners are leveraging service providers to scale their operations and focus on core activities, particularly in areas like administration for alternative investments. This aligns with the region’s interest in increasing technology adoption to drive efficiency. It’s clear that outsourcing is playing a key role in helping asset owners streamline processes and enhance overall operational performance.”