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Institutional Investors Show Greater Optimism Than CFOs

A recent study released by Teneo, a prominent global advisory firm, indicates a notable contrast in economic outlooks between institutional investors and corporate Chief Financial Officers (CFOs). According to the report, which incorporates insights from 332 global CFOs and institutional investors managing approximately $16.7 trillion in assets, 78% of investors predict economic conditions will improve in the latter half of the year. In stark contrast, only 43% of CFOs share this optimistic perspective.

With global economic conditions impacted by fluctuating trade tariffs and the rising influence of artificial intelligence, this report sheds light on how corporate finance leaders are adjusting their strategies. A significant 86% of CFOs are currently reshaping their global supply chains, a clear reflection of the increased complexity in modern economics and the impact of geopolitical factors. The findings suggest that CFOs are not only cautious but are also re-evaluating overarching corporate expenditures and capital investments.

Interestingly, among U.S. CFOs, optimism appears stronger, with 53% expecting improvement going into the second half of the year compared to just 29% of their international counterparts. This divergence highlights varying perceptions of economic incentives based on geographic location and prevailing market conditions.

Notably, the findings indicate a change in approach towards mergers and acquisitions (MA). CFOs are increasingly wary, with 71% altering their approach to MA as they navigate slow market dynamics. Nearly half of the CFOs, along with 40% of the institutional investors, identify market volatility as the foremost hindrance to deal-making. Alongside this, concerns such as geopolitical uncertainty, surging costs of obtaining capital, and a lack of high-quality acquisition targets loom large in their strategic planning.

While institutional investors advocate for a bullish outlook, mostly attributing it to favorable market conditions, the corporate financiers proceed with caution. The influence of tech disruption, particularly driven by advancements in AI, is acknowledged by both groups as a critical variable that accelerates the definition of corporate strategies, such as increased spending on Sales, General, and Administrative (SGA) costs, and expanded capital investment plans.

Despite the inherent challenges signified by the fluctuating economic landscape, the availability of capital markets is seen as a reassuring factor. CFOs and investors alike express confidence in their access to debt markets. Over 67% of CFOs are optimistic about the affordability of debt, underpinned by continued support from the private equity sector.

As the global finance environment adapts to ongoing disruptions, experts at Teneo, led by figures such as Christian Buss and CEO Paul Keary, assert that firms must remain agile. The findings emphasized that while there are distinct challenges prevailing in the current market, significant opportunities exist for those who can adeptly navigate these uncertainties.

Key Findings

1. Divergent Economic Outlook: Institutional investors maintain a more optimistic view of future economic conditions compared to CFOs.
2. Geographical Discrepancy: U.S. CFOs exhibit higher optimism than their international peers regarding expected future improvements.
3. Shifting Business Strategies: CFOs are recalibrating supply chain management and capital expenditure due to new economic realities.
4. Volatility as a Barrier: CFOs consistently cite market volatility as a principal constraint on future acquisitions.

The Teneo Vision 2025 CFO and Investor Outlook Survey, conducted between May 16-29, 2025, emphasizes the evolving perspectives within the financial sector, amid shifting operational scenarios influenced by global trade dynamics. The contrasting viewpoints between institutional investors and CFOs highlight the need for coherent strategic alignment to thrive in the face of persistent market challenges.

For more detailed insights and to access the full report, visit Teneo’s website.