The markets are waking up again, and the latest asset management trends show where money and regulation are headed next. Asset managers, broker-dealers, and funds are pivoting fast as technology, macro shifts, and investor behavior collide. First, stocks are now again popular. According to Principal Asset Management, rising business
cycle indicators are reviving international markets. In an attempt to predict that the Fed will loosen sooner rather than later, institutional portfolios are shifting toward cyclical industries. Translation: If inflation does not spoil the fun, growth stocks might finally be worth their prices.
Global credit markets are currently dominated by non-bank financial entities, according to the Bank for International Settlements. The message is clear: systemic influence may be slipping out of the hands of established banks. This implies greater exposure to interconnectedness, increased cross-border risk, and less leeway for complacency as liquidity tightens for funds and dealers. Asset management is still changing within the sector as a result of margin compression. While technology adoption speeds up in the areas of compliance, analytics, and reporting, passive investing continues to eat up the lunch of active managers.
The winners? Intelligent automation and operational risk management are done by businesses before regulators do it for them. Additionally, digital assets are changing from being hype to becoming infrastructure. Treasury and fund companies are experimenting with tokenized holdings as a result of regulatory clarity, which may soon redefine settlement and liquidity. Finally, broker-dealers are getting some love again. With rate cut expectations building, retail trading volumes are ticking up. Proof that market optimism can still be
monetized.
Bottom line: these aren’t asset management trends trends they’re inflection points. For firms that read them right, 2025 could mark a new era of efficiency, digital transformation, and market power consolidation. Everyone else? They’ll be busy writing compliance reports.
