Asset management sails into 2026 on slowing organic growth, propelled by three intertwined forces: technology as the dominant accelerant, a stark demographic barbell, and lingering macro uncertainty. Marc Barrachin, Global Head of Products at ISS Market Intelligence, highlights the dramatic pace of tech change reshaping expectations for investors and advisors alike. Demographics create a clear divide: the 60-plus cohort holds most assets but enters distribution and wealth transfer phases, while 25-35-year-olds, lighter on current holdings, represent the primary growth engine with markedly different service demands. Macro volatility from tariffs to geopolitics amplifies pressure, as defined contribution assets grew solely from market swings over recent years, with net flows flat to negative.

Consolidation sharpens the battlefield. Top three managers control 63% of assets, top ten 75%. Advisor platforms expand rapidly: LPL and JPMorgan advisor counts up over 20% in five years, Fidelity and Schwab over 40%.

Adam Feldstein, Head of Product and Client Engagement, charts ETF dominance. Assets swelled from $3tn in 2018 to $14 trillion today. Active ETFs grew 40% year-to-date against 7% for passive, fueled by digital currency, Bitcoin, and single-stock leveraged products. Launches concentrated in leveraged equity single-stock (173 so far), derivative income, and defined outcome buffers.

Precision in distribution separates winners. Advisor surveys show RIAs leaning toward ETFs, wirehouses toward SMAs, regional banks toward mutual funds. Retirement favors collective investment trusts, with mutual funds still anchoring target-date strategies. Barrachin sees 2026 accelerating technology adoption, customization needs, lower returns, regional fragmentation, and retail private markets entry. Diversification across products and channels, plus tempered investor expectations, will prove decisive.

Source: Video - Key Opportunities in Asset and Wealth Management for 2026