Nearly two-thirds of asset managers expect increased margin pressures over the next two years

Carne Group report

A majority of asset managers have said commercial pressures to their businesses could impact their profitability in 2025 and 2026, a report has found.

According to Carne Group's Supermodel: the great evolution in asset management report, 65% of asset management executives forecast a surge in margin pressures in the next two years. The report, which surveyed 200 asset management executives, stated that fee pressure, regulation and operating costs are acting as a combined force set to challenge asset managers' profitability. The largest group to be affected will be traditional asset managers, with 58% citing rising regulatory challenges and 50% naming fee pressure as the main drivers of margin erosion in the near future. 'The milli...