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Institutional Investors Adapt to New Megatrends in 2026

In an ever-evolving investment landscape, institutional investors globally are redesigning their strategies in response to three pivotal megatrends: artificial intelligence (AI), the energy transition, and deglobalization. According to the preview findings from Nuveen's sixth annual EQuilibrium Global Institutional Investor Survey, these trends are driving significant changes in portfolio management practices and investment allocations.

Understanding the Megatrends

The assessment highlights that 63% of institutional investors view AI as the most critical factor influencing their decision-making over the next five years, followed by energy transition at 40% and deglobalization at 36%. With 800 institutions from 30 countries contributing to the survey—representing nearly $17 trillion in assets—this data underscores the widespread impact of these themes on global investment strategies.

The Dominance of AI Investment

A staggering 96% of surveyed institutions indicated that they are actively investing in AI opportunities. The focus is predominantly on increasing economic productivity through advanced AI technologies. Investors are channeling funds into cloud infrastructure, computing resources, and AI software development, seeking significant returns from these areas. A notable 39% of investors also consider energy production and infrastructure crucial for AI's continued growth, marking a clear interconnection between these sectors.

Energy Transition: From Risk to Opportunity

The shift in perspective towards energy investments is significant, with institutional investors moving from a risk management focus to an opportunity-seeking approach. This change is driven by a surging global energy demand, prompting increased interest in clean energy projects and infrastructure. Nuveen's findings reveal that 64% of institutions believe that the anticipated growth in energy demand will enhance opportunities for clean energy investments. Notably, impact-focused investors prioritize energy innovation as a top area for future funding.

Impact of Trade and Geopolitical Tensions

Geopolitical issues have compelled 91% of investors to rethink and adjust their portfolios in 2025, highlighting the importance of regional diversification amidst uncertainty. For many, increasing exposure to Europe has become a strategic priority. Additionally, sectors such as AI technology, alternative credit, private equity, cryptocurrency, energy, and cybersecurity are frequently mentioned as areas of growing investment.

The Future of Private Market Allocations

According to the survey, around 81% of institutional investors plan to up their allocations to private markets over the next five years, with private infrastructure and private credit being the most attractive options. The ongoing trend towards investing in private markets portrays a broader strategy of seeking stability and enhanced returns while distancing from public market volatility—illustrating a clear adjustment in institutional investment behavior.

Conclusion

Nuveen's survey illuminates how institutional investors are responding proactively to the transformative influence of AI, the energy transition, and deglobalization on their investment strategies. This ongoing evolution not only reshapes traditional investment paradigms but also presents exciting opportunities for growth in previously underserved sectors. With the full report set for release in March 2026, further insights will emerge regarding how these trends play out on a global scale, guiding investors toward a resilient and progressive future.

For additional details, you can visit Nuveen's official website at www.nuveen.com/equilibrium.