Neutral impactEconomy
Global asset management industry to expand through 2030, profitability remains a challenge: Morgan Stanley
BusinessLine 1 hr ago·25 Oct 2026, 8:18 am
Global asset and wealth management firms entered 2026 with record assets under management, totaling $159 trillion, a significant 15% increase from the previous year. This surge is driven by strong market performance and growing investor interest in diversified portfolios. However, the industry faces a critical profitability challenge. Despite the massive scale, revenue growth is struggling to keep pace with rising costs, creating a difficult environment for firms to generate healthy net profits.
For investors, this signals a shift in how they should evaluate asset management stocks. While the sector benefits from a booming market, companies with strong cost control and efficient operations will likely outperform those facing margin pressure. Investors should monitor quarterly earnings reports closely to see if firms can successfully navigate these economic headwinds and maintain their growth trajectory.
Excerpt from BusinessLine
The global asset management (AUM) industry is expected to witness continued growth through 2030, however, declining management fees could put pressure on revenues, with private markets and artificial intelligence (AI) emerging as key drivers of profitability, according to a report by Morgan Stanley. The report noted…Read the original at BusinessLine
Key takeaways
- Category: Economy.
- Assessed as a significant, market-relevant update.
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