Trending Themes in Asset and Wealth Management
- Outsourcing Surge: Asset Managers Turn to Specialist Partners to Power the Next Wave of Growth: Reveals that asset managers are accelerating their use of specialized outsourcing partners to boost efficiency, streamline non-core functions, and reallocate internal resources toward higher‑value activities like investment innovation and client engagement
- Bridging the Gap: How Technology and Education Are Shaping Advisor Success: Reflects how advisors see technology as vital to growth but remain constrained by outdated tools and limited training, signaling a need for unified platforms, stronger enablement, and AI‑driven modernization to enhance client engagement and competitiveness
- PEPs Gain Traction: Recordkeepers Align with Growing Sponsor Demand: Throws light on pooled employer plans which are rapidly gaining traction as recordkeepers target micro and small plan growth, driven by SECURE 2.0 incentives, rising employer adoption, and provider innovation in integrated, cost‑efficient retirement solutions
These interconnected trends underscore a dynamic environment where evolving client expectations, a focus on comprehensive service, and a fundamental shift in investment vehicle preferences are collectively shaping the opportunities and challenges for Asset and Wealth Management firms aiming for future growth. This collective evolution signals a profound transformation across the sector, pushing firms to rethink traditional models and embrace new approaches to remain competitive and relevant
Outsourcing Surge: Asset Managers Turn to Specialist Partners to Power the Next Wave of Growth
Introduction
- Asset managers are increasingly embracing outsourcing as a strategic approach to enhance operational efficiency, streamline non-core activities, and reallocate resources toward higher-value priorities such as alpha generation, product development, and the cultivation of deeper client relationships
- Respondents report the top three tasks and functions outsourced in their firms are fund tax compliance (43%), management company accounting (41%), and fund administration (40%), according to a recent report by a professional services firm Citrin Cooperman published in Feb’26 on “The Present and Future State of Asset Management” [Sample population: Survey polled 300 senior leaders of asset management firms across US]
- The findings highlight that functional outsourcing is now the norm, spanning both fund and management company activities
Setting the Context: The outsourcing trend extends well beyond tax and accounting. Asset managers are increasingly leveraging external partners across IT, HR, valuation, and compliance operations. Survey evidence from specialist providers point in the same direction
- An Oct’25 fund management industry survey by Citisoft, revealed that 73% of firms outsource their fund accounting, while middle‑office functions are frequently either outsourced or heavily dependent on third‑party platforms [Sample population: 70 asset managers, asset owners, and insurers]
- Similarly, a 2025 survey by Carne Group revealed that 88% of fund managers expect to increase outsourcing in middle and back offices within 12 months, with nearly half (49%) anticipating a dramatic surge. [Sample population: 251 C-suite executives in fund management globally and 200 European institutional investors]
Industry Response & Adaptation: Asset managers are increasingly partnering with specialist vendors to externalize non‑core functions
- Columbia Threadneedle Investments (Ameriprise’s global asset manager, Aug’25):
- Selected State Street Corporation as the service provider for a unified and outsourced global back office, covering fund accounting, administration and custody services for pooled funds, including ETFs, across the US and Europe
- Ardea Investment Management (a fixed income manager, Jul’25): Selected SimCorp’s front-to-back platform to transform its investment operations. Ardea is also adopting SimCorp Managed Business Services to outsource key operational processes in data management and investment operations
Evalueserve Perspective
Against this backdrop, asset managers should reassess and sharpen their outsourcing strategies:
- Asset managers need to redesign their outsourcing programs that improve reporting quality, timeliness, and compliance infrastructure
- Asset management firms need to shift focus on internal hiring for investment talent and client‑facing teams, while leveraging outsourced capacity for fund tax compliance, management company accounting, and administration
- Fund houses should review existing, fragmented outsourcing arrangements and rationalize vendors to reduce overlap, negotiate better economics, and close control gaps
Bridging the Gap: How Technology and Education Are Shaping Advisor Success Introduction
Introduction
Wealth management is undergoing rapid transformation. Advisor priorities around growth, client engagement, and competitiveness — are being reshaped by rapid advances in technology and rising expectations for product education.
- A Feb’26 Broadridge–FSI study reveals that 68% of advisors lack confidence in their current tech to support growth, and 30% say better tools could influence broker‑dealer choices.
- More than three‑quarters (76%) believe upgraded capabilities would boost new client acquisition
- The findings underscore a critical duality: while technology is essential, it is insufficient without adequate education and enablement. Over 82% of advisors say better training and tool awareness would improve growth, highlighting a widening gap between rapid innovation and usability
Setting the Context: As advisor expectations shift, the industry is moving toward smarter technology, with advisors increasingly prioritizing modern tools and strong support to drive consistent, sustainable growth
- Advisors continue to operate within fragmented tech ecosystems, with many indicating that outdated or disconnected tools constrain efficiency, growth alignment, and even firm‑level affiliation decisions
- Modernization is increasingly viewed as a growth lever, with enhanced digital capabilities linked to improved onboarding, automation, and stronger client‑facing engagement—areas advisors believe can directly accelerate acquisition
- AI adoption is rising but not without tension, as advisors balance productivity gains with client expectations for deeper human guidance, signalling the need for tools that enhance rather than dilute relationship‑driven value
Industry Response & Adaptation: Across the asset and wealth management ecosystem, leading institutions are moving decisively to modernize advisor workflows and elevate client engagement through advanced AI and automation:
- BNY Mellon (Feb’26): Deployed 134 AI‑driven digital employees to cut operational load, expanding advisor capacity for planning and outreach while tech investments and Eliza‑based training accelerates prep, streamlines workflows, and amplifies high‑value engagement
- Prudential Advisors (Feb’26): Now enriches over a million leads using Aidentified data – an external data provider – delivering deeper prospect context and intent signals. AI‑driven scoring improves prioritization, cuts manual research, and strengthens conversion‑focused prospecting
- Goldman Sachs (Feb’26): Partnered with Anthropic to build Claude‑based agents for accounting, vetting, and onboarding, reducing documentation friction and accelerating onboarding so advisors can redirect time toward more meaningful client engagement
Evalueserve Perspective
Advisor growth will hinge on pairing connected tech with systematic enablement. Hence, leading advisors and the AWM firms supporting them, should emphasize the following:
- Unify the advisor stack: Rationalize tools around onboarding, workflows, and data—measured by time‑to‑plan and NPS uplift
- Operationalize AI with governance: Prioritize explainability, compliance guardrails, and human‑in‑the‑loop review; launch playbooks that map AI use cases to client outcomes
- Institutionalize education: Build role‑based academies and just‑in‑time guidance inside advisor desktops; certify proficiency tied to adoption metrics
- Close the last mile: Translate insights into client‑ready narratives that scale personalized outreach and drive conversion
PEPs Gain Traction: Recordkeepers Align with Growing Sponsor Demand
Introduction
Pooled employer plans (PEPs) have moved to the top of recordkeepers’ strategic priorities, with firms identifying the micro and small plan segments as key sources of new plan growth. PEPs deliver cost effective retirement benefits with strong fiduciary oversight and streamlined administration.
- SECURE 2.0 Act catalyzed adoption of PEPs by expanding eligibility to 403(b) plans and integrating automatic enrollment features
- Majority of the recordkeepers anticipate that the $1M to $5M and $5M to $25M plan segments will drive significant growth over the next two years
Setting the Context: The PEP market continues to expand at a remarkable pace, reflecting plan sponsor demand and a surge in assets under management.
- Assets are skyrocketing: Assets in PEPs doubled from 2022 to 2023, reaching nearly $12B, and grew to $21B in 2024, as per Cerulli’s U.S. Retirement Markets 2025 report
- Employer adoption is scaling fast: More than 50,000 employers now participate in a PEP, underscoring that pooled structures are gaining scale, according to Cerulli report
- Future demand is undeniable: Over two-thirds (67%) of plan sponsors are considering switching to a PEP or may consider it in the future, as per Mercer’s Voice of the Plan Sponsor survey report
Industry Response & Adaptation: Providers are actively evolving their product suites to capture this demand, launching integrated solutions that bundle technology, support, and investment solutions for micro, small and mid-size employers
- ADP Retirement Services (Dec ’25): Introduced an integrated PEP to streamline administrative tasks and enhance the participant experience through payroll integration
- Vestwell (Oct ’25): Launched a dedicated PEP for small businesses with less than $2.5M in assets, simplifying compliance and lowering audit costs
- Transamerica & Fiducient Advisors (Oct ’25): Collaborated to launch a 403(b) Pooled Employer Plan, providing flexible plan design and institutional quality investments
Evalueserve Perspective
As PEP adoption accelerates, retirement providers must adapt their product, partnership, and cost strategies to remain competitive
- Expanding Product Lineups: Providers should broaden and refine 401(k) and 403(b) PEP offerings that integrate recordkeeping, pooled plan provider services, and 3(38) investment management
- Leveraging Strategic Partnerships: Recordkeepers, asset managers, and fintechs must collaborate more closely with retirement aggregators, specialist adviser practices, and TPAs to create differentiators such as tailored PEP designs, innovative service models, and enhanced fiduciary oversight
- Driving Cost Efficiency and Scale: Harnessing technology to streamline administration is critical. Providers that reduce costs, pass efficiencies to sponsors, and maintain a competitive edge over traditional single‑employer plans will define the next wave of market leaders
