Gatekeeper Pulse® 2025 Risk Readiness at the Fore
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ACCESS PGIM’S 2025 GATEKEEPER PULSE SURVEY®
Capital Protection & Liquidity Take Centre Stage
Recalculating Risk & Liquidity
Amid expectations for slower growth and heightened market volatility, fund selectors are increasingly seeking risk-minded managers and volatility-dampening strategies.
Income and diversification are in demand, with asset allocation
pivoting towards a more defensive stance across public and
private markets in pursuit of resilient opportunities.
Market Sentiment Snapshot
Recalculating Risk & Liquidity
Unlock Alpha through Diversification
Conclusions
Insights from 210 fund selectors from Europe and Asia managing US$31 trillion in assets
The tilt toward bonds reflects a broader recalibration of risk. Globally, heightened geopolitical risk, subpar economic growth and the potential for reinflation have emerged as key concerns.
As public and private credit markets increasingly converge, gatekeepers globally are adopting a more holistic approach—seeking opportunities across the full credit spectrum to optimize risk-adjusted returns.
predict higher returns from global private credit
34%
Risk appetite among gatekeepers in Asia
has moderated, with a more cautious stance toward alpha generation, compared with 2024.
Investment-grade credit
High yield
Emerging market debt
Private credit
2024
2025
74%
56%
Fixed income remains the area with strongest conviction, driven by expectations of a lower-rate environment that reinforces its appeal for income generation and portfolio diversification. Over half of responding gatekeepers in Asia plan to increase allocations to lower-risk sectors and maintain diversified duration exposure.
Bonds as the anchor for stability
Market Sentiment Snapshot
EXPECT RETURN VOLATILITY TO RISE OVER THE NEXT
12 MONTHS
83%
In Asia, gatekeepers expect further growth in alternatives, with infrastructure, private equity, and private credit topping allocation plans. Within these, gatekeepers emphasise consistent, stable returns and strong risk management, prioritising absolute returns and downside protection.
believe that greater access to
liquid vehicles could ignite the next wave of private market growth
71%
ALTERNATIVE INVESTMENTS CONTINUE TO GROW AS A STRATEGIC AREA OF FOCUS
Unlock Alpha through Diversification
plan to raise allocations to cash or money market funds to strengthen liquidity
39%
TOP THEMES ASIA GATEKEEPERS EXPECT TO INCREASE POSITIONING
%
Driven by low equity correlation and stable income generation, real estate is emerging as a strategic asset in diversified portfolios and an effective inflation hedge
Asia’s gatekeepers are adjusting portfolios to guard against volatility, reducing direct equity risk while pursuing reliable income as well as higher return-seeking fixed income in both public and private markets.
Risk and readiness
COnclusions
Diversification remains key, liquidity provides a buffer, and core-type real assets offer an inflationary hedge.
All eyes are on central banks, as a cut in interest rates could signal a shift back into growth equities.
The study captured insights from 210 gatekeepers across 14 regions in Europe and Asia, all responsible for fund selection at firms managing over US$1 billion in assets, representing a total AUM of US$31 trillion. The online survey was conducted between March and April 2025.
67%
50%
59%
44%
59%
38%
say the pace of rate cuts will be the primary driver of fixed income returns
74%
prioritise allocations to high-quality bonds
57%
in asia are targeting co-investment
and direct lending opportunities
50%
over
IN ASIA SEE MID-MARKET PRIVATE CREDIT AS A CONTINUED SOURCE OF OPPORTUNITY
69%
Point to private markets as paths for more direct access to thematic investment opportunities
58%
Cyber/data security
Aging population
Data centre and
cloud infrastucture
GATEKEEPERS IN ASIA PLAN TO INCREASE ALLOCATIONS TO LOWER-RISK CORE INVESTMENTS AND REITS WITHIN REAL ESTATE STRATEGIES
55%
Asia gatekeepers stress the importance of risk-management processes when evaluating alternatives. They also strongly prefer consistent, reliable returns to more variable outcomes.
here
%
%
%
Which of the following sectors are you targeting when adding credit risk in search of alpha?
Artificial intelligence
0
0
0
0
ABOUT THE SURVEY
%
Technology-related themes, including cybersecurity, AI and data infrastructure, represent priority, followed by aging demographics.
market sentiment snapshot
recalculating risk and liquidity
unlock alpha through diversification
conclusions
market sentiment snapshot
