In an increasingly uncertain environment, PGIM surveyed investors across the US, Europe, Asia-Pacific and Middle East to uncover how geopolitical risks are changing the way institutions are constructing their portfolios and approaching risk management. The results shed light on the risks that investors fear most, as well as the actions they are taking to either mitigate the potential fallout or capitalize on opportunities that emerge.

Despite the unpredictability of the current environment, nimble investors can assemble portfolios with the ability to be more resilient against unexpected market shocks and an outlook that can be instantly transformed by geopolitical consequences.

Risks and Opportunities in an Election Cycle—And Beyond

The US presidential election’s potential ripple effect across the domestic economy and global markets will help shape the investment outlook in 2025 and beyond. Different outcomes in federal and state races present divergent policy paths for key issues such as taxes, regulations and trade.

Tackling Economic Challenges as Tough Choices Loom

With new governments taking shape across Europe after a flurry of elections, investors are focused on how the region will solve its economic challenges to drive growth and increase competitiveness in a fragmented political landscape.

High Anxiety, But With Opportunities Emerging from a New Trade Landscape

While investors around the globe are confronted with a host of potential threats, geopolitical concerns are notably higher in the Asia-Pacific region than in other parts of the world. Meanwhile, a stronger US dollar is a risk that APAC investors list high on their list of concerns, given a higher dollar’s impact on emerging markets.

DIVERSIFYING ACROSS GLOBAL OPPORTUNITIES

Regional conflicts, concerns about supply shocks in oil markets, and global efforts to reduce carbon emissions are driving institutional investors in the Middle East to geographically diversify their portfolios and increase allocations toward emerging opportunities in global public and private markets.