Asset owners are keeping their portfolios in a holding pattern, awaiting information that will enable them to decide how best to shift their allocations in the coming years. The Global CIO Survey found 73 per cent of CIOs planning ‘no change’ in allocation shifts–a much higher proportion than in previous years.

Amid heightened risk, CIOs are re-thinking their various equity exposures. Liquid equity allocations have mostly been kept static, with 70 per cent of CIOs planning ‘no change’ in their active equity allocations. And only 15 per cent are planning a net increase in private equity allocation, as sentiment towards private markets cooled. 

While most surveyed funds are in a wait-and-see posture, some are adjusting or planning adjustments around the edges to address inflation. The survey finds 44 per cent of respondents planning to increase real assets exposure, 31 per cent planning to add private credit exposure, and 31 per cent planning to shift equities to more inflation-proof sectors and other value-oriented investments.