U.S. institutional investors seek opportunities in private assets and sustainable investing

U.S. institutional investors are increasingly looking to private assets opportunities to invest sustainably, according to Schroders in its annual survey, which spans 200 North American institutional investors (26 percent of the total 770 global respondents), including 117 in the U.S. representing more than $7 trillion in U.S. assets, and gauged institutional investor sentiment on the key trends and drivers impacting the investment landscape, and how they are managing their portfolios accordingly.

Nearly a third (32 percent) of U.S. institutional investors plan to increase their private asset allocations over the next two years, primarily due to diversification benefits, lower volatility and the potential to garner higher returns than the public markets. Investors had the highest interest in increasing allocation to infrastructure investments, with 42 percent planning to do so over the next 12 months.

Investors also see private assets as an opportunity to incorporate su