The 2023 Fidelity Institutional Investor Study underscores that allocators may be at a crossroads. The economic and investment backdrop has transitioned to a new regime marked by rising rates, higher inflation, and more volatility that could be a wake-up call for institutions to take action.

Fidelity has been surveying institutions for 21 years to understand their investment decision-making and emerging trends. The survey, conducted in May and June with data for the 2022 calendar year, features results from 500 U.S. institutions representing $12 trillion in assets under management.

The results show that institutions have not significantly changed their approaches to asset allocation, alpha generation, or risk management. The data and follow-up interviews indicate that allocators are facing a series of formidable challenges that may be tough to address all at once.