The pressure is real, and it’s clearly reflected in the outlook these analysts hold for their businesses, the markets and investment strategy in 2025:
Wealth Management Industry Outlook
Overall, 56% of wealth managers say their top growth factor is expanding their service offering. Growing the client base is another critical concern, and 48% say tapping new client segments will be important to ensuring growth. Providing greater access to private assets is also important to their success (48%). As is integrating a broader array of products including active ETFs, thematic investments, and model portfolios.
Wealth Management Market & Macro Outlook
Geopolitics and inflation dominate economic concerns for wealth managers with new geopolitical conflicts topping the list of threats in 2025. With prices remaining stubbornly high, 74% worry that Trump policies will reignite inflation. Most forecast only moderate interest rate cuts ahead. More than half (54%) expect central bank policy around the world will also begin to diverge from the Fed.
Wealth Management Investment Strategy
Given this environment, it’s no surprise that market volatility ranks as their top portfolio risk for 2025. More than two-thirds say uncertain markets call for active management, and 63% think markets will favor active investments this year. Private markets continue to factor into portfolio plans with private equity, private debt, infrastructure and real estate now accounting for 77% of all alternative allocations globally.
When it comes down to it, wealth managers recognize that they are surrounded by potential disruptions. With strategies in place for the business, for the market, and most importantly, client portfolios, they also recognize that execution will determine if they can live up to the AUM growth goals they need to hit in 2025. Success starts by ensuring they are positioned to address the key business challenges facing wealth managers.
