Global asset management industry to expand through 2030, profitability remains a challenge: Morgan Stanley
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Global asset management assets reached a record 159 trillion dollars, but falling management fees threaten future revenue growth. Firms must navigate these margin pressures to maintain profitability.
Global asset management assets reached a record $159 trillion in 2026, but Morgan Stanley expects falling management fees to constrain revenue growth through 2030. Private markets and artificial intelligence could drive profitability, with firms integrating AI across operations potentially improving cost-to-income ratios by up to 15 percentage points.
Asset management firms pool funds from investors to buy securities or other assets, earning revenue primarily through management fees charged as a percentage of assets under management.
- •Further adoption of artificial intelligence tools to reduce operational costs
- •Growth trends in private markets as a driver of profitability
- •Changes in global management fee structures through 2030