Business Transformation | 11.03.26

Asset Manager Profit Margins Shrink as Infrastructure Costs Climb

by: Steve Randall

Global asset managers face shrinking profitability as infrastructure costs rise and management fees decline, with profit per assets under management falling 19% since 2018 and projected to drop another 9.1% by 2030, according to PwC. Many firms devote most technology spending to maintaining outdated systems, limiting investment in innovation and complicating AI adoption; poor data quality and legacy platforms remain major obstacles. Market data, regulatory compliance and core technology are among the most expensive infrastructure components, while fee compression further restricts modernization budgets. Most firms favor hybrid approaches combining internal systems with external providers.

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