Asia-Pacific (APAC) investors are actively reshaping their portfolios in response to geopolitical uncertainties and market concentration risks, according to Schroders’ Global Investor Insights Survey 2026. The survey, conducted after the outbreak of war in Iran, highlights that 87% of APAC investors anticipate greater market volatility in the coming year, compared to 85% globally.
Geopolitical concerns, such as conflict in the Middle East and uncertainty over US foreign policy, are more pronounced among APAC investors than their global counterparts. These factors, coupled with energy security concerns, are driving a reassessment of traditional asset allocation strategies.
The survey, which included over 1,000 institutional investors and wealth managers with combined assets under management of $72t, found that APAC investors are prioritising downside protection and diversification. Only 5% plan to maintain their current strategic allocations, whilst 54% are seeking buying opportunities and 53% are increasing geographic diversification outside the US.
Active management is gaining traction, with 86% of APAC investors confident it can help achieve investment objectives. Johanna Kyrklund, Group Chief Investment Officer at Schroders, noted, “In an increasingly volatile world, investors are reshaping portfolios to put diversification and resilience front and centre.”
A holistic approach to public and private market allocations is also emerging, with more than half of APAC investors evaluating opportunities across equities, credit, and income holistically. This shift is reflected in portfolio allocations, with increased interest in private equity and credit alternatives.
Gopi Mirchandani, Head of Client Group, Asia, emphasised the need for nimble asset managers, stating, “Investors want asset managers who can be nimble, provide access to specialist exposures, and work across both public and private markets.”
