Global Asset Management Industry Projected to Grow Through 2030 Amid Revenue and Fee Pressures: Morgan Stanley

The global asset management industry is projected to see continued growth leading up to 2030, though declining management fees will likely present ongoing challenges to revenue generation, according to a recent report by Morgan Stanley.

Data cited in the report shows that the global asset and wealth management sectors entered 2026 with assets under management (AUM) at record levels of $159 trillion, marking a 15 per cent year-on-year increase. However, the report points out that over 80 per cent of the growth in assets managed by asset managers—and nearly two-thirds of the growth for wealth managers—was driven by strong market performance and currency movements rather than fresh investment inflows.

Morgan Stanley notes that average management fees are expected to decline from approximately 35 to 32 basis points. Consequently, industry revenues are projected to grow at an annual rate of 7 per cent, lagging behind the anticipated 9 per cent growth in total assets under management.

To maintain profitability in this environment, firms will need to focus on specific growth segments. The report highlights private markets as a major revenue source, estimating they will generate 39 per cent of industry revenues by 2030 while accounting for only 15 per cent of total AUM.

Additionally, customised investment solutions are expanding beyond institutional and ultra-high-net-worth investors to a broader client base. In the United States, assets managed through externally managed customised investment models have more than tripled since 2023, with projections reaching $1.6 trillion by 2030.

Artificial intelligence is identified as another critical force reshaping operations across the sector. While more than half of firms have integrated AI into at least one part of their investment processes, limited deployment has not yet yielded substantial financial returns. The report suggests that firms adopting AI across their entire operational footprint, rather than limiting it to isolated tasks, could improve their cost-to-income ratios by up to 15 percentage points by 2030.

Ultimately, the report concludes that the asset management industry will expand significantly by the end of the decade without automatically becoming more profitable, meaning the distinction between industry leaders and competitors will depend heavily on strategic positioning rather than simply asset accumulation.

"The findings from Morgan Stanley highlight a critical shift for the financial sector. As management fees decline and asset growth is increasingly driven by market performance rather than new inflows, firms can no longer rely solely on asset accumulation. Financial startups and asset managers must focus on operational efficiency through technologies like artificial intelligence and capitalize on high-margin segments such as private markets and customized investment solutions to sustain long-term profitability." — Dr. Shishir Gupta, Founder & CEO, StartupLanes