Stability under stress: Inside UK institutional investing in 2026
Our forward-looking survey asked 110 institutional investors from the United Kingdom, how they are reacting to geopolitical disruption, adjusting portfolios to meet near-term objectives and positioning for longer-term megatrends, such as AI and energy demand.
The results reveal how UK institutions are navigating an increasingly complex environment.
Highlights include:
- Regional diversification has re-emerged as a priority
Reductions in U.S. exposure and increases elsewhere suggest growing attention to concentration risk. Among UK institutions adjusting regional allocations, 49% are reducing U.S. exposure, while 37% are increasing exposure to Europe (ex-UK). - Private markets continue to expand in role and complexity
Allocations to private markets are rising alongside greater emphasis on diversification and structure. 81% of UK institutions plan to increase private market allocations over the next five years with 43% of UK investors planning to diversify their alternative credit portfolio as a top priority over the next 5 years. Private credit (48%) and infrastructure (45%) lead demand increase. - AI shapes long-term thinking, though paths differ
Conviction around AI is high, but implementation varies. 70% of UK institutions identify artificial intelligence as the most influential megatrend shaping their investment strategy over the next five years, with capital being directed toward energy production and infrastructure (45%), cloud infrastructure (41%), computing power/chips (40%) and AI model and software development (40%). - Impact investing goes mainstream
Sustainable & impact investing are central to UK investment decision making and are recognised as enhancing - not constraining - the opportunity set. Over 50% of UK institutional investors believe climate risk is investment risk. Impact investing is aligning financial returns with measurable social and environmental benefits, with energy innovations (61%) and infrastructure projects (59%) leading the way for UK institutional investors.
Unlock insights shaping the future of UK investing
