Institutional investors are shifting capital toward infrastructure and emerging market equities, according to the Marsh 2026 Global Asset Owner Barometer, a survey of 430 asset owners managing a combined $5.76 trillion. The findings indicate a broad repositioning as investors grapple with inflation, geopolitical disruption, and a narrowing opportunity set in developed public markets.
Infrastructure led all asset classes with a net allocation intention of +42.3%, with 50.7% of respondents planning to increase exposure over the next 12 months. This marks the third consecutive survey (2023, 2025, 2026) where infrastructure has topped the list, suggesting a durable trend rather than a cyclical trade. The asset class offers long-duration income, exposure to the energy transition and digital development, and inflation linkage that becomes more valuable when monetary policy is unsettled. One chief investment officer at a health foundation told Marsh they had doubled their infrastructure exposure in anticipation of the AI data center build-out, noting the U.S. is "materially underinvested in infrastructure projects, specifically energy."
Emerging market equities also saw a sharp acceleration, with net allocation intentions climbing 30.8 percentage points year-over-year to +33.5%. Nearly 47% of asset owners plan to increase EM equity exposure. This reflects a reassessment of relative value and a deliberate effort to reduce concentration risk in developed markets. U.S. equity net intentions fell to -10.3%, while UK equities dropped to -16.5%. The report notes that headline U.S. index exposure has become synonymous with technology sector concentration, prompting investors to reconsider their geographic mix. This mirrors trends at the client level: the iShares MSCI Emerging Markets ETF was up more than 37% in the 12 months to February 2026, compared to 12% for the S&P 500.
Inflation-linked assets recorded the second-largest net swing at +35.2%, up 24.4 percentage points from 2025. Cash also saw a sharp reversal, moving from net negative territory to +22.0% net allocation intention—a 35.5 percentage-point swing that signals a desire for optionality as much as safety. These shifts suggest investors are building both inflation hedges and liquidity buffers simultaneously.
Geopolitical risk is the dominant near-term concern, cited by 75.1% of asset owners as a significant influence on portfolio decision-making over the next 12 months, ahead of inflation (72.8%) and AI/technology disruption (72.6%). Nearly half (48.4%) adjusted geographic exposure in the past year, while 37.2% reduced overall portfolio risk and 36.7% increased cash or liquidity holdings.
Private market exposure is now near-universal, with 96.3% of portfolios including some form of private allocation, up from 80.0% in 2025. However, the nature of that exposure is changing: 44.0% of asset owners describe their current approach as "greater selectivity" rather than expanding pace or scope. Garvan McCarthy, Global Alternatives CIO at Marsh, noted that the next phase will reward asset owners able to pace commitments, maintain underwriting discipline, and understand how each exposure affects portfolio liquidity and aggregate risk.
For financial advisors, these institutional trends offer a roadmap for client portfolios. Private infrastructure—particularly power, data centers, and grids—is gaining ground as advisors rethink allocations in the same direction as their institutional counterparts. The growing interest in private investments is also reflected in broader surveys, though access remains a challenge for many retail investors.
Deborah Wardle, International CIO at Marsh, summarized the challenge: "Staying resilient will mean managing the risks already showing up in portfolios, while also rethinking some of the assumptions that may no longer hold in a more disrupted market." The survey's findings suggest that asset owners are doing just that, with a clear pivot toward real assets and growth markets.
