The survey found that eight in 10 institutional investors made no significant portfolio changes in 2020, but the most common reason for changes this year was the pandemic (52%). Some of those changes include:

An increased focus on multi-asset strategies. Nuveen found that 58% of investors were taking a multi-asset approach, the most popular one. Investors are facing a number of challenges: a low-return environment, "idiosyncratic risk factors," access to private markets and how to align ESG investments with their organizations' values, according to the report. Liability-driven and outcome-oriented investing were also popular strategies, with over a third saying they were relying on one of these strategies.
Increasing allocations to alternatives. Ninety-two percent of investors are currently investing or plan to invest in alternatives in the next year, according to the survey. Infrastructure investments may be the most popular in 2021, as 34% of investors said they are planning to increase their allocations, followed by real estate and private equity, each at 27%, and private credit at 26%. Nuveen also found that investors are approaching private markets more tactically. More than half are making a strategic shift out of public markets, according to the survey.

Instant Insights /

Investor focus turns to portfolio strength, social issues

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