The 2026 Asset Managers Report, the company’s third annual study of the industry, finds firms investing across technology, talent and vendor consolidation to build the operational foundations needed to compete.
Delivering asset growth and net inflows ranked as the leading business challenge over the next three years (31%), alongside regulatory change and compliance (31%). Many asset managers are embracing new opportunities in private markets and active ETFs to secure growth. 67% say retail and semi-professional access to private markets is already influencing their product strategy. This approach, however, comes with its own challenges: 62% agreed that operational complexity from products such as ETFs and private markets is increasing costs.
The research, which surveyed 200 senior asset managers across the UK, Luxembourg and Switzerland, makes clear that fragmented data is a critical limiting factor on asset managers’ ability to quickly adapt and respond to this challenging market.
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65% believe fragmented fund data is preventing their organisation from improving operational efficiency
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69% say the speed and accuracy of fund data are becoming increasingly important differentiators when winning and retaining distribution partners
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64% believe AI will only deliver meaningful value if firms first improve the quality and structure of their underlying data.
AI adoption across the industry is near-universal, with almost all respondents (99%) reporting some level of usage. Client reporting & personalised communications was the top use case for AI among surveyed asset managers, followed by data collection, validation or quality checks, and then risk management.
Yet the levels of adoption in the industry vary significantly. Fewer than four in ten (36%) describe their use of AI as broad or fully integrated, and 40% are still stuck in pilot or early exploration mode. Some of the biggest barriers to scaling AI are organisational: cybersecurity and data privacy concerns (31%), lack of governance and auditability (29%) and limited internal skills (26%). But the common constraint is data: 64% believe AI will only deliver meaningful value if firms first improve the quality and structure of their underlying data.
In response to these challenges, organisations are investing across multiple fronts: talent acquisition, retention and training is the leading investment priority, followed by vendor consolidation then automation/digitisation. Businesses are no longer asking whether to change; they are asking how fast they can. Nearly nine in ten respondents (89%) expect consolidation across the industry to increase over the next 12 months, with the greatest anticipated impact across product ranges, distribution platforms and technology providers rather than asset manager mergers alone.
Liam Healy, chief executive officer at FE Fundinfo, said: “The boundaries that once defined asset management are blurring. Private markets are moving into the mainstream, active ETFs are gaining ground, AI is reshaping what firms believe is possible. The scale of simultaneous change is unlike anything companies have had to manage before – and it is happening against an economic backdrop that is unforgiving.
Data has become the determining factor in how quickly businesses can move from opportunity to outcome. The organisations best positioned for what comes next are those acting now to connect the information flows across product development, regulatory reporting and distribution that will turn operational capability into competitive advantage.”
