How wealth managers are looking to grow AUM
Wealth managers will need to reach aggressive short-term goals, according to Natixis Investment Managers, if they want to grow their assets under management (AUM) in a crowded market.
In the firm’s 2025 Wealth Industry survey, the firm canvassed 520 individuals responsible for running investment platforms and managing client assets in 20 countries.
Wealth management AUM will increase by 20 per cent globally over the next five years to US$159 trillion and is estimated to grow another 10 per cent by the end of the decade to reach US$178 trillion in 2029.
Firms globally said they are projecting an average AUM growth of 13.7 per cent in 2025, but Natixis IM said this figure falls to 8.3 per cent for those in the Asia-Pacific region.
“Increased client demand for broader services and access to more sophisticated investments raise the stakes even further. And while wealth managers position for potential tectonic shifts in their business in the long term, firms will still need to achieve aggressive short-term goals for AUM growth.
“Markets may help, as they have in 2023 and 2024, but wealth managers know delivering on growth expectations will also hinge on their ability to win new clients with enhanced service offerings, and retain them by meeting their return expectations.”
The top factor perpetuating this AUM growth is expanded service offering, which was cited by over half of respondents followed by 48 per cent who said they wanted to tap into new client segments.
In APAC specifically, wealth managers said they are leveraging technology to both offer digital wealth management platforms and apply advanced analytics to personalise the client experience. This includes personalising services, streamlining segmentation efforts, and using technology to address the needs of a younger generation.
“The challenge is all the more pressing as the industry looks at an ageing client base and finds ways to replenish their roster with younger investors. Faced with the great wealth transfer, 34 per cent see it as a threat to their business, while 34 per cent say it’s an opportunity to win new assets,” it said.
A previous report by MSCI stated high-net-worth clients are increasingly seeking personalised portfolios from their advisers.
Alex Kokolis, head of wealth management at MSCI, said it is getting harder for advisers to follow these guidelines and simultaneously meet the individual preference of their clients.
“While some firms saw it as a differentiator, it was not a widespread industry focus due to the high costs and labour-intensive nature of tailored services, but technological advancements have begun to dramatically reduce costs and allow for efficient and scalable solutions.
“Clients are increasingly conscious of how their investments affect society and the environment. They are no longer satisfied to focus only on financial returns; they want to ensure their portfolios align with their personal values.”
AUTHOR
Laura Dew
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