Key Takeaways
- • Northern Trust's second annual global peer study, published 19 May 2026, surveyed more than 180 pension funds, endowments, outsourced CIOs, insurers and other asset owners and found private markets now central to portfolios.
- • 94% of respondents invest in private markets, up from 86% in 2025, with private market allocations averaging 17% of the portfolio.
- • 60% of respondents say liquidity has become more important over the past year, increasingly framed as a strategic risk reserve tied to resilience and risk management.
- • 47% report current digital asset exposure, with adoption shaped by regulation, governance and servicing capabilities; nearly 70% cite AI as a top operational challenge and 57% cite data integration and accuracy issues.
Summary
Northern Trust's second annual global peer study, published on 19 May, surveyed more than 180 pension funds, endowments, outsourced chief investment officers, insurers and other asset owners. According to the findings, the study highlights a continued shift toward private markets, a growing focus on liquidity through a strategic risk lens, meaningful adoption of digital assets, and rising investment in data, technology and artificial intelligence.
Some 94% of respondents reported investing in private markets, up from 86% in 2025, and private market allocations rose to 17% of the average portfolio. Among UK respondents, 86% said they currently invest in private markets, with 83% of those investing in real estate, 67% in private equity and 67% in natural resources and energy.
Liquidity has become a priority. Sixty percent of respondents said liquidity has become more important over the past year, and 57% of UK respondents said the same for their investment strategy. Northern Trust EMEA pensions and insurance executive Mark Austin said more investors are holding higher levels of liquid assets as a "strategic risk reserve," a move partly driven by geopolitical uncertainty and by the need to meet capital calls from higher private market allocations. Reasons cited for the increased importance included changes to risk strategy, the current interest rate environment and liability-driven investing.
Digital asset exposure is expanding. Some 47% of respondents globally reported current exposure, and 50% of UK respondents said they invest in digital assets, directly or indirectly. Those not investing cited risk tolerance and lack of regulatory clarity. Austin said adoption reflects both small allocations viewed as a potential investment and interest in the underlying technology's potential to automate processes and reduce costs.
Technology and data spending is also rising. Nearly 70% cite harnessing AI as a top operational challenge, while 57% cite data integration and accuracy as key obstacles. Among UK respondents, 57% are likely to spend more on compliance and regulatory reporting technology, 36% on trading, investment diligence and liquidity management technology, and 64% are seeking to increase technology adoption to improve operational efficiency.
Some 94% of respondents reported investing in private markets, up from 86% in 2025, and private market allocations rose to 17% of the average portfolio. Among UK respondents, 86% said they currently invest in private markets, with 83% of those investing in real estate, 67% in private equity and 67% in natural resources and energy.
Liquidity has become a priority. Sixty percent of respondents said liquidity has become more important over the past year, and 57% of UK respondents said the same for their investment strategy. Northern Trust EMEA pensions and insurance executive Mark Austin said more investors are holding higher levels of liquid assets as a "strategic risk reserve," a move partly driven by geopolitical uncertainty and by the need to meet capital calls from higher private market allocations. Reasons cited for the increased importance included changes to risk strategy, the current interest rate environment and liability-driven investing.
Digital asset exposure is expanding. Some 47% of respondents globally reported current exposure, and 50% of UK respondents said they invest in digital assets, directly or indirectly. Those not investing cited risk tolerance and lack of regulatory clarity. Austin said adoption reflects both small allocations viewed as a potential investment and interest in the underlying technology's potential to automate processes and reduce costs.
Technology and data spending is also rising. Nearly 70% cite harnessing AI as a top operational challenge, while 57% cite data integration and accuracy as key obstacles. Among UK respondents, 57% are likely to spend more on compliance and regulatory reporting technology, 36% on trading, investment diligence and liquidity management technology, and 64% are seeking to increase technology adoption to improve operational efficiency.
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