Global asset managers enter 2026 on a stable footing, but shifts in product mix, fees and technology are steadily reshaping the industry’s risk and return profile.
Stable macro conditions support AUM and revenue growth
Global asset managers are set to begin 2026 in broadly supportive operating conditions. Slightly lower policy rates, together with steady although subdued economic growth, will help sustain demand for risk assets and support further expansion in assets under management (AUM).
Equity markets in the US, Europe and Asia have generally performed well following a volatile first half of 2025, and that backdrop should carry into 2026. At the same time, richer valuations and concentrated gains in sectors such as AI and other high-growth industries mean that volatility and dispersion are likely to remain elevated. Managers will need to balance the benefit of stronger markets against higher market risk and the potential for sharp style or sector reversals.
Scale, product mix and technology drive divergence
While AUM is likely to grow at the industry level, expansion will not be evenly shared. Larger, multi-product firms are positioned to capture a disproportionate share of net inflows. Their breadth of offerings across mutual funds, institutional mandates, ETFs, customised separately managed accounts (SMAs) and private market strategies makes them more relevant to a wider range of clients.
These firms are also at the forefront of using AI tools and data-driven platforms to improve research, distribution and operational efficiency. This helps offset persistent pressure from lower management fees and rising costs for personnel, technology and distribution. Smaller and mid-sized managers, by contrast, face a tougher combination of fee compression and higher fixed costs, which will keep consolidation, partnerships and sub-advisory arrangements high on the strategic agenda.
Organic growth and alternatives gain momentum
Despite supportive markets and, for much of the past decade, relatively low interest rates, organic growth in the asset management industry has been modest, averaging just under 2% a year. In 2026, that picture should improve slightly as investor preferences evolve.
Demand is rising for active ETFs that combine intraday liquidity with active management, and for customised SMAs that can be tailored to tax, environmental, or outcome-based objectives. At the same time, investor access to private markets is expanding through semi-liquid structures and new distribution channels, broadening the investor base beyond traditional institutions.
Alternative asset managers stand to benefit from this shift. Lower interest rates, a pickup in M&A activity and selective deregulation are likely to support deal flow and fundraising. Private markets are on track to generate more than half of total industry revenue by 2030, reflecting their higher profitability: they currently produce around four times as much profit per $1 billion of AUM as traditional strategies. Managers with established platforms in private equity, private credit, real assets and infrastructure, together with strong distribution capabilities, are well placed.
Key takeaways for Global Asset Management 2026:
A stable macro backdrop, with slightly lower policy rates and steady growth, will support AUM and revenue expansion.
Volatility and dispersion, particularly in high-growth sectors such as AI, will remain an important source of both risk and opportunity.
Scale, product diversification and investment in AI and technology will increasingly separate global franchises from smaller competitors.
Industry organic growth should improve as demand builds for active ETFs, customised SMAs and broader access to private market investments.
Alternative managers will be key beneficiaries of the shifting revenue pool, as private markets move toward generating more than half of total industry revenue by the end of the decade.
Read the full Global Asset Management 2026 for deeper analysis and supporting data.