Investors Seek Resilience and Selective Opportunities Amidst Economic Uncertainty

Investors are increasingly turning to active management to strengthen portfolio resilience and capture specific investment opportunities amidst economic uncertainty.

A recent survey by Schroders found that four in five institutional investors and wealth managers plan to increase their use of actively managed investment strategies in the coming year.

Portfolio resilience is the top priority for investors over the next 18 months, with 82% of those prioritising it looking to harness active management.

Public equities and private equity have emerged as the preferred asset classes for return generation in the current environment, selected by 46% and 45% of investors respectively.

Small-to-mid cap buyouts in private equity are seen as compelling by 65% of investors, driven by their transformative growth potential and insulation from global trade tensions.

Income generation is evolving from traditional fixed income allocation to multi-channel, risk-adjusted sources, including PDCA and infrastructure debt.

PDCA is the most attractive allocation option for global investors looking to generate income over the next 12 months, selected by 44% of investors.

Securitised products are ranked as the best opportunity for risk-adjusted returns by 64% of wealth managers who selected PDCA, highlighting the growing demand for alternative income sources.

Investors are seeking a selective and adaptable approach to manage complexity and create portfolio resilience in today's fragmented markets.

Active management is seen as essential in today's economic environment, with four in five investors set to increase their allocation to actively managed strategies this year.