Northern Trust Peer Study: Asset Owners Focus on Data and Operating Model Resilience Amid Digital Disruption

Northern Trust released “Asset Owners in Focus: Operational and Data Adaptation in the Era of Digital Disruption,” its second annual global peer study examining how asset owners are adapting investment strategies and operating models to support more sophisticated portfolios amid elevated liquidity demands and accelerated technological change.

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Based on a global survey of more than 180 asset owners across a broad range of portfolio sizes, the study highlights a continued shift toward private markets, an increased focus on liquidity through a strategic risk lens, meaningful adoption of digital assets, and growing investment in data, technology and AI, alongside persistent challenges related to data availability and quality, operational complexity and governance.

The survey gathered responses from senior leaders of pension funds, insurance general accounts, endowments and foundations, superannuation funds, OCIOs and multi‑managers, and other institution types across the Americas, EMEA (Europe, Middle East and Africa) and APAC (Asia-Pacific) regions.

Key findings at a glance

• Private markets are becoming more central: 94% of respondents report investing in private markets (up from 86% in 2025), and private market allocations rose to 17% of the average portfolio.
• Liquidity is a priority through a risk lens: 60% say liquidity has become more important over the past year, increasingly tied to portfolio resilience and risk management.
• Digital assets are expanding—deliberately: 47% report current digital asset exposure, with adoption shaped by regulation, governance and servicing capabilities.
• Data and AI investment is rising, but data issues persist: nearly 70% cite “harnessing the power of AI” as a top operational challenge, while 57% cite data integration and accuracy as key obstacles.

Private markets: growth and access challenges
Public markets continue to anchor most institutional portfolios, while private markets are playing an increasingly central role in return generation, diversification and long-term strategy.

• 94% of respondents report investment in private markets (up from 86% in 2025), with private market allocations rising to 17% of the average portfolio.
• One-third cite difficulty accessing desired funds and managers as a top investment challenge, underscoring growing competition for capacity.

Liquidity: a strategic risk priority
Liquidity remains a central concern, with 60% of respondents saying it has become more important over the past year. Beyond the interest rate environment, asset owners increasingly view liquidity through a broader risk‑management lens, tied to portfolio resilience, geopolitical uncertainty and counterparty considerations.

“As portfolios become more complex, asset owners are placing greater emphasis on operating models and data infrastructure that support disciplined decision‑making around risk and liquidity,” said Jessica Donohue, head of Asset Servicing, Americas at Northern Trust. “The focus is less on reacting to short‑term market conditions and more on ensuring portfolios can be managed confidently across market cycles.”

Digital assets: growing exposure, cautious execution
Nearly half (47%) of respondents reported current digital asset exposure, either directly or indirectly. Cryptocurrencies remain the most common entry point, but asset owners are increasingly accessing the asset class through ETFs, funds and other digitally native structures. Adoption remains deliberate, shaped by regulatory clarity, governance requirements, and servicing capabilities.

Data and AI: momentum constrained by foundations
Interest in AI has risen sharply, with nearly 70% of respondents identifying ‘harnessing the power of AI’ as a top operational challenge, a significant increase year-on-year. However, foundational data issues persist: 57% cite data integration and accuracy as key obstacles, limiting the ability to fully leverage analytics, automation and AI across investment and operating functions.

“As technology becomes more embedded in both front‑ and back‑office functions, asset owners are placing greater emphasis on practical execution,” said Ian Hamilton, head of Asset Owners, Europe at Northern Trust Asset Servicing. “The priority is not transformation for its own sake, but using data, analytics and digital capabilities to improve efficiency, oversight and resilience, particularly as private markets and liquidity demands continue to grow.”

Operating models: targeted hybrid approaches
Across regions, asset owners are increasingly adopting hybrid operating models that balance internal control with external expertise. Decisions around insourcing and outsourcing are becoming more targeted, reflecting a desire to scale efficiently while maintaining oversight as portfolios grow more complex.

“Looking ahead, the shift toward more targeted hybrid models reflects a broader recognition that scale must be deliberate and well governed,” said Leon Stavrou, head of Australia and New Zealand at Northern Trust Asset Servicing. “Sophisticated asset owners are increasingly seeking scale through operating models and partnerships that support oversight, execution and long‑term strategy, rather than simply adding complexity as portfolios evolve.”

Additional findings and commentary are available on A-Suite by Northern Trust, a community in which asset allocators can learn, collaborate, and move the needle on issues that matter most to them.

For many decades, Northern Trust has been dedicated to serving the needs of global asset owners. The goal within the asset owner segment is to empower the missions of its clients, supporting their investment and operational objectives, so that they may serve their constituents, their communities, and the world.

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