A third (34 per cent) of global institutional investors say they’ve already incorporated or plan to add digital assets to their investment portfolios in the near future, according to a new survey by Northern Trust.
The survey, which polled more than 100 institutional investors, found two-thirds (66 per cent) said private assets will benefit the most from a transition to digital formats, followed by real world assets such as commodities and property (53 per cent) and money market funds (36 per cent).
Roughly nine in 10 (88 per cent) respondents cited cybersecurity as a top or major issue for their organization and 81 per cent expressed high or moderate concern about artificial intelligence-driven threats or attacks.
However, more than a third of respondents believe AI has the potential to significantly enhance portfolio optimization, while 26 per cent said AI will transform their manager due diligence processes and 21 per cent foresee a substantial impact on risk management procedures.
“These findings underscore the duality of opportunities and challenges as our clients navigate their data needs with the emerging integration of digital assets and advanced technologies,” said Pete Cherecwich, incoming chief operating officer at Northern Trust, in a press release. “As the investment landscape continues to evolve, we remain committed to providing our clients with the insights and solutions needed to manage these dynamic changes.”