Institutional asset owners are continuing to increase allocations to private markets and digital assets, while accelerating investment in data, technology and artificial intelligence (AI), according to Northern Trust’s 2026 Global Asset Owner Peer Study.

The report found that 94 per cent of respondents now invest in private markets, up from 86 per cent in 2025, with private equity representing the largest exposure.

However, access constraints were also rising, as 31 per cent of respondents identified “difficulty gaining entry to desired funds and managers” as a top investment challenge.

Liquidity also remained a major operating and investment concern, with 60 per cent of respondents saying liquidity had become increasingly important in 2026.

While interest rates remained influential, the report revealed that asset owners were increasingly focused on changes in risk strategy, with Northern Trust suggesting this reflected a broader focus on geopolitical uncertainty and financial system resilience.

The study also highlighted growing institutional adoption of digital assets, with 47 per cent of global respondents reporting some form of current investment exposure.

Northern Trust said the findings suggested digital asset participation had “moved into the institutional mainstream”, although adoption remained cautious due to concerns around risk tolerance and regulatory clarity.

Regulatory and compliance support was also identified as a key servicing requirement for digital asset portfolios, with 46 per cent of respondents selecting it.

Elsewhere, the report found that asset owners were accelerating investment in data, technology and AI, although data integration and accuracy remained the biggest operational challenges, both cited by 57 per cent of respondents.

The study also showed that AI adoption was moving from experimentation towards operational priority, with 68 per cent of respondents identifying “harnessing the power of AI” as a top operational challenge.

Northern Trust added that asset owners were placing increasing emphasis on service providers’ ability to manage complex investment structures, with 38 per cent identifying this as a key priority.

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