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But along with wide-scale political change, wealth managers are faced with economic uncertainty, rapid technological advancements and a wave of industry consolidation, making disruption a genuine concern in 2025.

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.

High expectations for AUM growth in 2025

The growth engine has run strong for wealth managers over the past five years as assets under management grew by 20% globally. As a result, the advisory industry was responsible for the stewardship of an estimated $159 trillion globally in 2024. Assets are estimated to grow another 10% by the end of the decade to reach $178 trillion in 2029.

Top 10 Wealth Management Markets Globally

Source: Statista

Results from the 2025 Natixis Wealth Industry Survey -which included 520 investment professionals running investment platforms and managing assets at leading wealth managers in 20 countries-suggest the drive for growth is even greater this year as firms project average AUM growth of 13.7% in 2025 alone.

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.

Technology will play a critical role in this arena - especially as rapid development of generative artificial intelligence (AI) provides new efficiencies. In fact, 77% of wealth managers think AI will allow their firm to integrate a wider range of services for clients. But tech can be a double-edged sword, as 52% also worry that AI is helping to make robo-advice a meaningful competitive threat.

At the same time, wealth managers need to consider how geopolitical turbulence and persistent inflation will play out in the macro environment. As much as 73% say they are optimistic about their market prospects in 2025, yet 61% are also worried about prospects for stagflation in Europe.

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.

By Dave Goodsell, Executive Director, Natixis Center for Investor Insight - Natixis Investment Managers.

Reports:

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