Wealth managers are increasingly tapping into AI and private assets in order to grow their assets under management, according to a Natixis IM survey.
The 2025 Natixis Investment Managers Wealth Industry Survey, which polled the views of 520 fund selectors in 20 countries, highlighted increasing AI adoption among wealth managers to improve internal investment processes, business operations and client servicing. Further, 79% expect the technology to accelerate earnings growth for the next 10 years.
Some 58% also said their firm has already implemented AI into their investment process.
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Elsewhere, looking at the split between private and public assets in portfolios, Natixis found globally, public assets make up 88% of client portfolios compared to 12% for private assets. However, this is likely to narrow as private assets become more widely adopted by asset and wealth managers. Some 48% of the wealth managers surveyed say meeting client demand for unlisted assets will be a “critical factor” in their growth plans.
Cecile Mariani, head of global financial institutions, Natixis IM said: “Wealth managers face a wide range of challenges in 2025, educating their clients to the benefits of owning private investments, to finding the best ways to integrate AI into their investment and business processes.
“However, despite potential roadblocks, wealth managers are confident that they can harness potential disruptors to unlock new opportunities and live up to the AUM growth goals they need to hit in 2025.”
A total of 26% considered a lack of access to private assets to be a threat to their business. The industry also faces challenges when it comes to educating clients on private markets, with 42% saying that client understanding of liquidity can be a hurdle to incorporating private assets.
Overall, 92% plan to increase or maintain their private credit offering. Private equity allocations paint a similar picture with 91% planning to increase or maintain private equity investments. 69% said that despite high valuations, they think private assets are “good value” for the long term.
Meanwhile, almost three quarters of fund selectors are optimistic about market prospects this year despite heightened geopolitical uncertainty, and 73% are positive on the outlook for market returns this year.
New geopolitical conflicts was named as the top economic concern, with 38% choosing it as the factor they are most worried about.
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This was closely followed by inflation, which was the top concern for 37% of fund selectors. 74% of those surveyed said they are worried that inflation will be reignited by president Trump’s policies.
Escalation of current wars, US-China relations (both 34%), and a tech bubble (27%) were also flagged as concerns.
Despite the concerns, some 68% of analysts report they will not adjust return assumptions for 2025, with wealth managers putting strategies in place for their businesses, the market and client portfolios to ensure they can deliver results.
