Marsh: Asset owners boost cash, infrastructure, emerging markets to manage volatility

76 trillion under management, are making significant changes to their portfolios in response to geopolitical uncertainty, persistent inflation, and an evolving investment opportunity set. “This year’s research comes amid a historic rise in capital spending on AI infrastructure, data centers, and semiconductors — a transformation already boosting earnings,” said Niall O’Sullivan, Global Chief Investment Officer, Marsh Investments and Retirement.

” The 2026 Barometer found nearly half (48%) of asset owners surveyed have adjusted their geographic positioning over the past 12 months, while more than a third reduced overall portfolio risk (37%) and increased liquidity or cash holdings (37%). Infrastructure, inflation protection, and emerging markets lead allocation plans Just over half (51%) of the asset owners surveyed intend to increase allocations to infrastructure over the next 12 months. Inflation-linked assets and emerging market equities are also gaining momentum, with 41% and 47% of respondents, respectively, planning to increase exposure.

The most significant year-on-year shift in asset class plans was in cash. Thirty-eight percent of respondents plan to increase allocations in the next year, up from 9% in 2025 “These shifts suggest asset owners are adopting a deliberate barbell position — strengthening downside protection and diversification while retaining flexibility to respond to market opportunities,” said Mr. O’Sullivan. ” Private markets are widespread, but investors are becoming more selective Private market exposure is near-universal among the 430 asset owners surveyed.

Nearly all, 96%, report allocations to private markets, up from 80% in 2025. However, interest in private debt and private equity has cooled from last year’s levels. Just over a third (34%) of asset owners plan to increase holdings in private debt this year, compared to 48% in 2025. While access to private markets has broadened, investors are becoming more selective; 44% report they are maintaining pace with greater selectivity, as valuations remain the most significant factor shaping capital deployment, cited by nearly half (47%) of respondents.

“Private markets have become easier to access but harder to manage well. Valuations are stretched, competition for assets has intensified, and success now depends on deep deal expertise rather than simply having capital to deploy,” said Garvan McCarthy, Chief Investment Officer of Alternatives, Marsh Investments and Retirement. ” AI investment across operating models is moving faster than governance Governance around the use of AI is not keeping pace with the growing strategic importance of its use across operations. Nearly one in three (32%) say AI is being used in pockets without mature governance, while 23% are still developing policies and running limited experiments.

Only 13% have enterprise-wide AI policies with defined investment use cases. Even so, AI spending is rising quickly. Fifty-eight percent of asset owners say AI tools are a capital expenditure priority over the next 12 months, ahead of data management (46%) and risk systems (33%). Geopolitical risk is the biggest near-term concern; technology dominates the longer-term outlook The forces shaping near-term decisions differ from those driving long-term portfolio design.

Geopolitical risk is the most cited near-term concern, considered “significant” by 75% of asset owners over the next 12 months, followed by inflation (73%) and AI or technology disruption (73%). Over a five- to 10-year horizon, however, 83% of respondents say technology, automation, and broader disruption are significant to investment opportunity and risk, the highest reading across the structural trends surveyed.

“In the near term, geopolitical risk and inflation are shaping decisions, while over the longer term, technology and broader disruption are expected to have a stronger effect on sources of return,” said Deborah Wardle, International Chief Investment Officer, Marsh Investments and Retirement. ” Click here to read the report. 76 trillion in assets under management. The sample includes institutional investors (pension funds, insurers, sovereign wealth funds, endowments and foundations) and wealth managers (wealth managers, private banks, family offices), based across 25 countries throughout North America, Europe, the Middle East, Asia and Pacific.

Research was conducted via an online survey by CoreData Research from June to July 2026. Note: At points in the research analysis, we compare 2026 data with previous Large Asset Owner Barometer studies ( ). Comparisons are drawn where there are clear shifts in momentum or behavior and are intended to provide directional guidance rather than a like-for-like comparison. About Marsh Marsh (NYSE: MRSH) is a global leader in risk, reinsurance and capital, people and investments, and management consulting, advising clients in 130 countries.

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