Global financial institutions are increasingly turning to private market alternatives to diversify portfolios as traditional 60/40 strategies face challenges from rising stock-bond correlations, according to a PGIM Investments study. The survey, involving 210 gatekeepers from institutions with over USD1bn in assets across the UK, Europe, and Asia, reveals that 41% see private alternatives as central for uncorrelated returns. Despite this, 76% of Asian respondents believe they are underinvested in these strategies. PGIM’s Jessica Jones highlighted private markets’ potential for better risk-adjusted returns and volatility management. Meanwhile, Matt Shafer of PGIM anticipates private markets becoming as crucial to diversification as emerging market investments. The study also shows a mixed outlook for equities and optimism for both public and private fixed income returns.