Nuveen has published the results of its annual Global Institutional Investor Survey, revealing that 58 percent of the 40 surveyed Nordic investors plan to significantly boost their equity exposure in 2025, compared to just 23 percent in 2024. Additionally, there are intentions to allocate more capital to private markets, infrastructure, and notably, niche private credit investments.
The comprehensive survey includes responses from 800 institutional investors, including investment decision-makers, portfolio managers, and chief investment officers, across 29 countries, collectively managing up to $19 trillion in assets. The survey includes responses from 40 Nordic investors, who collectively manage $740 billion in assets. The Nordic segment of the survey reveals an increasing appeal of long-term and inflation-protected assets. Notably, 65 percent of Nordic investors plan to increase their allocation to private markets, 55 percent aim to invest more in private infrastructure, and 41 percent are seeking exposure to niche private credit investments.
According to Nuveen’s institutional investor uncertainty barometer among global respondents, market uncertainty has decreased from 69 last year to 63 this year. Approximately 80 percent of respondents cite higher volatility and geopolitical conflict as the primary drivers of this uncertainty. Additionally, 28 percent of global investors fear a global recession is likely in 2025. In contrast, 38 percent of Nordic respondents share this concern. When asked about the likelihood of macro events in 2025, 80 percent of Nordic investors anticipate increased market volatility, while 75 percent expect interest rate adjustments and rising geopolitical risk. The remaining respondents were either unsure (the second-highest response) or believe these events are unlikely (the lowest response).
“…Nordic institutional investors are showing a great level of resilience by responding to market uncertainties through diversification into private markets while exploring liquid opportunities…”Alex Hansen, Head of Nordics at Nuveen.
“We have entered a year where market volatility, interest rate fluctuations and geopolitical uncertainty remain present, Nordic institutional investors are showing a great level of resilience by responding to market uncertainties through diversification into private markets while exploring liquid opportunities – balancing risk mitigation with emerging opportunities,” says Alex Hansen, Head of Nordics at Nuveen.
With uncertainty levels declining when the survey was conducted in October and November 2024, investors were actively reallocating “risky assets.” The survey reveals that Nordic institutions are planning to increase their equity and credit exposure while reducing duration and cash allocations over the next 12 months. Specifically, 58 percent of Nordic investors intend to boost their equity exposure, a significant rise from 23 percent in 2024. Additionally, credit exposure is set to increase modestly, with 38 percent of respondents planning to allocate more to credit, up from 35 percent. In contrast, the proportion of respondents planning to increase duration exposure has fallen from 50 percent to 33 percent, while the percentage planning to increase cash exposure has dropped sharply from 30 percent to 15 percent.
The statistics also reveal Nordic investors’ growing interest in private market investments. According to the survey, 65 percent plan to increase allocations to private markets, 55 percent intend to boost their investments in private infrastructure, and 41 percent are expanding into niche private credit opportunities over the next five years. This trend signals the emergence of private markets as a key driver in shaping the future of portfolio construction in the region. Notably, Nordic investors recognize that expanding into private markets and alternative investments brings organizational benefits, such as enhanced investment expertise and a greater ability to stay ahead of emerging trends.
“The emerging asset allocation strategies amongst Nordic institutional investors reflect a proactive stance in optimising portfolio performance in search for higher returns amidst changing economic conditions” says Alex Hansen, Head of Nordics at Nuveen.
