Institutional asset owners are facing a steep climb amid geopolitical instability and macro-economic issues impacting allocations, which are pushing them to cautiously build resilience into their portfolios, according to a new survey from Morningstar.

Margaret Stafford, director of product management for index products at Morningstar, says investors are particularly thoughtful around a concentration risk from technology sector equities.

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“This is very top of mind for asset owners, . . . the challenges [around] how to define and measure the risk of that exposure at the total portfolio level. We saw a tension between increasing [artificial intelligence] concentration or allocating toward AI-driven winners.”

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