More than half (51 per cent) of global asset owners, including pension funds, intend to increase allocations to infrastructure over the next 12 months, research by Marsh has revealed.

Marsh’s 2026 Barometer, which surveyed 430 asset owners with a combined US$5.76tn under management, also found that 41 per cent of respondents planned to increase allocations to inflation-linked assets and 47 per cent to emerging market (EM) equities.

More than a third (38 per cent) of respondents planned to increase cash allocations in the next year, up from 9 per cent in 2025.

Responding to the findings, Marsh Investments and Retirement global chief investment officer, Niall O’Sullivan, said: “These shifts suggest asset owners are adopting a deliberate barbell position, strengthening downside protection and diversification while retaining flexibility to respond to market opportunities.

“To do that well, investors need more than good ideas – they need integrated advice and solutions that translate strategy into action, across markets, risk, liquidity, and long-term return goals.”

According to the research, almost all (96 per cent) respondents reported allocations to private markets, up from 80 per cent in 2025.

However, appetite for private debt appeared to have cooled, with 34 per cent of asset owners planning to increase holdings this year, down from 48 per cent in 2025.

Meanwhile, 44 per cent of asset owners said they are pursuing “greater selectivity” across private markets, as valuations remain the most significant factor shaping capital deployment.

Marsh Investments and Retirement chief investment officer of alternatives, Garvan McCarthy, commented: “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.

“The next phase will reward asset owners who can pace commitments, maintain underwriting discipline, and understand how each exposure affects liquidity and overall portfolio risk.”

More generally, the research found nearly half (48 per cent) of those surveyed had adjusted their geographic positioning over the past 12 months, while more than a third reduced overall portfolio risk (37 per cent) and increased liquidity or cash holdings (37 per cent).

While geopolitical risk was considered the biggest near-term concern of asset owners, technology dominated the longer-term outlook, more relevant to pension funds.

Over the next five to 10 years, 83 per cent of respondents said technology, automation, and broader disruption were significant to investment opportunity and risk.

O’Sullivan added that this year’s research, “comes amid a historic rise in capital spending on AI infrastructure, data centres and semiconductors – a transformation already boosting earnings.

“Capital is on the move in pursuit of true diversification, inflation protection and flexibility,” he concluded.

This article originally appeared in our sister publication European Pensions.

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