North American institutional investors are maintaining a long-term investment mindset despite the challenges posed by this year's volatile election cycle, according to a new survey from Schroders.
The survey captured 2,830 respondents across a spectrum of institutions, including pension funds, insurance companies, family offices, endowments and foundations, and wealth and financial advisors, collectively responsible for $74.5T in assets. A majority (63%) of respondents said they view global elections as short-term noise, with 77% of endowments and foundations particularly committed to their long-term strategies.
The survey indicates that monetary policy and economic uncertainty are top concerns influencing portfolio performance. A significant portion (75%) of investors cite central bank policy as a key factor, along with high interest rates (71%) and the possibility of an economic downturn (62%).
In terms of investment strategy, 73% of institutional investors are currently active in private markets, with a strong preference for private equity and private debt. The survey identified these asset classes as primary areas for increased allocation over the next year, as investors seek to capitalize on opportunities related to the energy transition and technological advancements.
While adoption of artificial intelligence (AI) in investment processes remains modest, interest is growing, with 59% of institutions expressing a positive sentiment towards AI integration. This reflects a broader trend toward seeking innovative approaches in an increasingly complex economic landscape.
View the press release here.
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