Asset Managers Pivot to Core Strategies and AI Integration

The report, which polled 300 industry leaders across North America, EMEA, and APAC, signals a clear shift in corporate philosophy. The number of managers prioritizing product expansion has plummeted from 60 percent to 47 percent over the last two years. Conversely, firms are increasingly pruning their offerings, with the focus on product reduction rising to 28 percent, up from just 5 percent in 2024.

To compensate for this tighter focus, reliance on external partners has surged. The share of managers planning to outsource non-core activities has more than doubled, reaching 39 percent. Offshoring remains the primary lever for cost control, cited by 69 percent of participants, while 42 percent point to outsourcing as a central pillar of their evolving operating models. Ryan Burns, head of Asset Managers and Private Markets, Americas at Northern Trust, notes that firms are now prioritizing investment expertise and distribution over indiscriminate growth, utilizing vehicles like ETFs and semi-liquid funds to extend their reach.

Technology is acting as the primary catalyst for this transition. Every firm surveyed reported using AI, primarily for data quality, document management, and research. However, leaders warn that the technology is only as effective as the underlying infrastructure. Nick Gilbert, head of Asset Servicing, EMEA, emphasizes that the transition from experimentation to implementation hinges on data governance and accessibility. As firms consolidate data from disparate sources, the industry is moving toward more straightforward, scalable operating models designed to withstand future complexity.