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B. G., Opalesque Geneva:

More than half the institutional investors say in a new survey that their top concern is geopolitical risk, including trade tensions between the U.S., Europe and China, major elections in over 70 countries this year, military conflicts, and structural changes in the global economy. Yet, one-third of them embrace the environment and plan a shift to higher-risk investments in 2025.

PGIM's 2024 Global Risk Report: Resilient Investing Amid Geopolitical Uncertainty surveyed 400 institutional investors across eight countries, representing $9tln in AuM. PGIM is the $1.33tln global asset management business of Prudential Financial, Inc.

Taking a long-term view

Among possible geopolitical flashpoints, investors say they are monitoring the Taiwan Strait and the South China Sea, with nearly half identifying it as the risk most likely to impact global markets in the next 24 months, given its ties to asset prices. Just over a quarter said military conflict in the Middle East is the greatest risk.

However, despite a heightened sense of geopolitical risk, investors say they are ready to take on risk in their portfolios - a sign that institutions are taking a long-term view and looking at volatility as an opportunity. One-third said they plan to have an aggressive portfolio strategy (i.e., taking on more risk) by the end of 2025, compared......................

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