The Schroders Global Investor Insights Survey highlights pivotal shifts in pension fund investment strategies across US$13 trillion in assets.

Nearly all respondents (94%) are either invested in or moving into private markets especially in areas like private debt, private equity, and renewable infrastructure – as pension funds seek long-term opportunities aligned with the energy transition and technological innovation. Indeed, the energy transition is a top priority for pension funds worldwide, with 93% of respondents already investing or planning to soon.

The demand for global equities is also strong, with 55% of funds expanding allocations to capture high-growth markets and sectors. This trend underscores a strategic shift towards global active management. Providing a skilled manager with the freedom to allocate across markets could potentially add alpha to portfolios.

Indeed, active management continues to play a crucial role with 70% of respondents favouring active managers for specialist approaches. Expertise can potentially yield outperformance, especially when focused on specific sectors, regions, investment styles, or themes.

Regional differences within fixed income opportunities also stand out, as Asia Pacific shows a distinct preference for asset-backed securities, while Europe’s demand for ESG bonds reflects local economic and regulatory influences.

Meanwhile, AI adoption is surging, with 91% of pension funds integrating it for operational and investment efficiencies, ushering in a new era of tech-driven decision-making.

In this dynamic landscape, Schroders remains a committed partner, equipping pension fund investors with insights and solutions designed to benefit from emerging opportunities while navigating evolving challenges.

About the Global Investor Insights Survey:

The Schroders Global Investor Insights Survey analyses the investment perspectives of global financial professionals on a range of themes across macro themes, sustainability and public and private markets. The field work was carried out by CoreData Research via an extensive global survey during June–July 2024. The 420 pension fund respondents were spilt as follows: 28% Corporate DB, 14% Corporate DC, 13% Corporate Hybrid and 45% Public Pension Funds. Respondents are from 26 different locations.

Any opinions expressed reflect our results as of July 2024. They are not intended to be a forecast or guarantee of future results. Throughout the report, we complement our global findings with regional results and insights from Schroders experts.

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