Wealth managers have experienced strong growth over the last five years, with assets under management ( AUM ) climbing 20% globally. The outlook remains very positive, with expectations of an average AUM increase of 13.7% in 2025, a new survey finds.

However, delivering on these expectations will require navigating significant challenges, including geopolitical changes, economic uncertainties and rapid technological advancement, according to the 2025 Natixis Investment Managers ( Natixis IM ) Wealth Industry Survey.

For the survey, Natixis IM polled 520 investment professionals responsible for running investment platforms and managing client assets at leading wealth managers in 20 markets, including Asia-Pacific region, which covers Australia, China, Hong Kong SAR, Japan, Singapore and South Korea.

“Wealth managers globally are facing a wide range of challenges, from meeting demand for new services and investment products to integrating new technologies into their business models,” says Dora Seow, chief executive officer of Natixis IM Singapore.  

“We are encouraged to see that APAC wealth managers are among the most optimistic on the two key themes that have emerged as strong growth drivers for the industry – AI and private assets. Given the strong pace of growth in private wealth in APAC, firms will need to align their offering to serve this increasingly sophisticated and discerning client base.”

APAC wealth managers are among the most optimistic on the two key themes that have emerged as strong growth drivers for the industry – AI and private assets

Geopolitics top economic concern

While 73% of wealth managers globally are optimistic about their market prospects in 2025, ongoing volatility in the macroeconomic environment and policy uncertainty are front of mind, the survey finds.

Respondents rank new geopolitical conflicts ( 38% ) as their top economic concern, closely followed by inflation ( 37% ), which 74% are worried will be reignited by US President Donald Trump’s policies.

Meanwhile, the potential for a US-China trade war is of greatest concern to those in the APAC region, where 80% of respondents say they are worried about this risk.

APAC also has the highest proportion of respondents who listed US-China relations ( 46% ) and the Chinese economy ( 24% ) as the biggest economic threats this year. This could explain why APAC wealth managers expect the slowest rate of AUM growth among global respondents at 8.3%.

Optimism over AI applications

After witnessing the rapid development of generative artificial intelligence models, nearly eight in 10 ( 79% ) wealth managers say AI has the potential to accelerate their earnings growth over the next 10 years.

The survey finds that 58% believe firms that do not integrate AI will become obsolete. Firms are looking to harness the benefits of the new technology in three key areas: tapping into the investment potential of AI, deploying AI to improve their internal investment processes, and using AI to enhance business operations and client servicing.

Firms are looking to harness the benefits of the new technology in three key areas: tapping into the investment potential of AI, deploying AI to improve their internal investment processes, and using AI to enhance business operations and client servicing

APAC wealth managers are among the most optimistic about the potential applications of AI in the investment process. The region has the highest proportion of respondents who agree that AI is becoming an essential tool for evaluating market risks ( 74% against a global average of 62% ) and who say they are actively integrating AI into their investment process ( 74% vs global average of 58% ). Notably 100% of the Singapore-based wealth managers surveyed agree with the last statement.

Beyond investment opportunities and portfolio management applications, wealth managers also anticipate that AI will impact the service side of the business. Here again, APAC wealth managers are optimistic, and are the most likely to agree that it will improve their ability to scale ( 66% vs 54% globally ) and are far more likely to agree that AI can better personalize their services to clients ( 60% vs 46% ).

Globally, over three-quarters ( 77% ) of respondents say AI will help meet their growth goal of integrating a wider array of services. However, technology can be a double-edged sword, as 52% ( and 66% in APAC ) also worry that AI is helping to make robo-advice a meaningful competitive threat.

Strong appetite for private assets

While technology has the potential to transform the industry, firms are also addressing the more immediate challenge of meeting clients’ evolving investment preferences, including a growing interest in private assets.

This year global wealth managers, on average, recommend allocating 12% of a model portfolio to private markets, up from 11% in 2024. APAC wealth managers’ average recommended allocation to private markets is among the highest at 13.2%, up from 11.6% in 2024.

Within this asset class, the biggest increases ( 2025 vs 2024 ) in recommended allocations in APAC are for private equity ( +1.5 percentage points ) and private debt ( +0.9ppt ).

Fulfilling the demand for private asset allocation is both an opportunity and a risk. Nearly half ( 48% ) of global wealth managers say meeting client demand for unlisted assets will be a critical factor in their growth plans but over one-quarter ( 26% ) say access to private assets, or the lack thereof, is a threat to their business.

New product structures will likely help ease the pressure, with nearly two-thirds ( 66% ) of respondents globally and 74% in APAC saying that retail-friendly private asset vehicles help enhance diversification.

The next challenge will be education, as 42% say client understanding of liquidity can be a hurdle to incorporating private assets. Managers will have to continue educating clients about the benefits of incorporating private asset strategies into their portfolios, which 65% say include diversification and 57% cite return enhancement. In addition, APAC wealth managers are most likely to cite the reduction of portfolio volatility ( 52% vs the global average of 40% ) as a key reason, apparently reflecting heightened concerns about factors that could result in market volatility in the region.

Managers will have to continue educating clients about the benefits of incorporating private asset strategies into their portfolios

All in all, 92% of global wealth managers say they plan to increase ( 50% ) or maintain ( 42% ) their private credit offering while 91% plan to increase ( 50% ) or maintain ( 41% ) private equity investments on their platforms.

Few among those surveyed see that changing, as 63% say there is still a significant delta in returns between private and public markets. This indicates that private assets, much like the inevitable integration of AI, represent a structural shift in the wealth management industry – one that will have a lasting impact on global portfolios, Natixis IM says.