Institutional investors prioritize private alternatives, energy innovations and infrastructure, says Nuveen report

Many investors are significantly reformulating their approach to risk management and asset allocation as they diversify their portfolios in response to heightened geopolitical tensions, higher interest rates, ongoing market volatility and upcoming elections.

“In our regular client engagements and in our recent survey of more than 800 institutional investors, we took a pulse on how $18 trillion of assets will be put to work and managed in the next one-to-two years,” said Mike Perry, head of Nuveen’s Global Client Group.

“Three clear themes are dominating investors’ focus as they position portfolios in the new regime. First is the huge appetite for exposure to energy innovations and infrastructure projects as the energy transition plays out. The second is private credit and private equity being prioritized among growing allocations to alternatives,” Perry said. “Lastly, as a way to position themselves to take advantage of these timely opportunities, investo