Canadian institutional investors more cautious than U.S. counterparts

Canadian institutional investors have a more cautious market outlook for the coming months than their U.S. peers, a new survey shows.

Released Monday, the annual survey was conducted by CoreData Research on behalf of Schroders plc, a British multinational asset management company. It was carried out this spring and involved 995 institutional investors globally, including 279 in North America.

It found that 55% of Canadian institutional investors expected the next 12 months to be more volatile than the period between 2007 and 2010, which included the global financial crisis. That compares to 44% of U.S. institutional investors who said they expected more volatility.

The survey also revealed that 76% of Canadian institutional investors considered tariffs and protectionist trade policies among the most significant macroeconomic factors impacting their investment strategies in the next year.

To navigate the uncertainty, 69% of Canadian respondents said they were at least somewhat more likely to employ active management in their portfolios.

The survey results also showed that Canadian institutional investors were leaning into private markets to generate returns and income.

Asked which two asset classes they were considering for the best return opportunities, 50% of Canadian institutional investors identified private debt and credit alternatives, while 48% selected private equity.

Further, 45% of Canadian respondents indicated they were decreasing their risk appetite in response to evolving macroeconomic trends.

Eighty per cent of the North American institutional investors said the S&P 500 raised the greatest concern over market concentration.

The survey was carried out by CoreData Research in April and May 2025, after U.S. President Donald Trump’s so-called “Liberation Day,” when his administration announced a slew of tariffs on international trade.

The 995 total respondents comprised institutional investors and “gatekeeper” wealth managers — specialist advisors who control access to investment opportunities for institutional investors. The breakdown of respondents by geographic region was as follows: 279 from North America, 245 from Asia Pacific, 293 from Europe excluding the U.K., 132 from the U.K. and 46 from Latin America.

Noushin Ziafati

Noushin has been the associate editor of Advisor.ca since 2024. Previously, she worked at outlets including the CBC, Canadian Press, CTV News, Telegraph-Journal and Chronicle Herald. Reach her at noushin@newcom.ca.