Global Asset Management: Navigating Consolidation, Talent Shifts, and the Road to 2035

The Silent Crisis in a Shifting Market

As global pension schemes and institutional investors consolidate, the asset management industry faces a subtle yet profound challenge: remaining relevant in a world of fewer, larger, and more discerning clients. Traditional strategies, broad marketing campaigns, generic fund updates, and macroeconomic outlooks are losing traction. This crisis, though quiet, is reshaping the industry from London to New York, Sydney to Singapore. With consolidation accelerating, marketing budgets shrinking, and talent under pressure, asset managers must adapt to concentrated buying power, heightened performance scrutiny, and a changing workforce. By 2035, the industry will look markedly different, with only those who evolve surviving the shift.

Global Consolidation: A Universal Trend

Consolidation is not unique to the UK’s Local Government Pension Scheme (LGPS), where the government aims for pools to exceed £25 billion in assets under management (AUM) by 2025 and £200 billion by 2040. Globally, pension funds and institutional investors are merging to achieve scale, reduce costs, and enhance governance. In Australia, the superannuation industry has seen funds drop from 205 in 2018 to 127 by 2024, driven by regulatory pressure to reach AUM of AUD 30 billion (approximately £15 billion) for viability. In the Netherlands, pension funds decreased from 1,050 in 1997 to 158 by 2023, with assets increasingly managed by large players like APG and PGGM.

In the US, corporate defined benefit (DB) plans are consolidating through risk transfers to insurers, with over $150 billion in pension liabilities offloaded in 2024. Defined contribution (DC) plans are shifting towards mega master trusts, such as Vanguard’s Ascent, managing over $100 billion. These trends echo the UK’s LGPS trajectory, where the number of pools is projected to shrink to four or five by 2040. As BlackRock’s CEO Larry Fink noted in 2024, “Scale is the defining feature of the future. Smaller players will struggle to compete on cost, access, or innovation.”

Consolidation concentrates buying power, forcing asset managers to compete for fewer relationships. In the UK, LGPS pools like Border to Coast (£65 billion AUM) and London CIV (£50.8 billion AUM) exemplify this shift. Globally, Canada’s Maple 8 pension funds, managing over CAD 2 trillion (£1.1 trillion), have set a precedent by insourcing investment capabilities and reducing reliance on external managers. This trend challenges asset managers to deliver specialised, high-value offerings rather than generic solutions.

The Performance Imperative

Performance scrutiny is intensifying as clients demand value for money. In the UK, 11 investment trusts were liquidated in the first half of 2025 due to underperformance, and major managers flagged significant portions of their fund ranges for subpar returns. Globally, similar pressures are evident. In Europe, Amundi has outperformed peers by focusing on cost-efficient ETFs and active strategies tailored to institutional needs, achieving consistent inflows. In contrast, active managers like Jupiter Fund Management faced outflows of £2.3 billion in 2024 due to performance challenges.

Fiduciary managers, tasked with delivering stable returns, are also under pressure. In the UK, fee revenue for fiduciary services has declined as clients negotiate harder. Globally, firms like Russell Investments have adapted by integrating ESG and private market capabilities, aligning with client demands for sustainable, long-term returns. As Fiona Bassett, CEO of Towers Watson Investments, stated in 2025, “Clients aren’t just looking for returns; they want partners who can navigate complexity and deliver measurable impact.”

The Talent Exodus and Retention Challenge

Consolidation and performance pressures are reshaping the talent landscape. As firms face shrinking margins and fewer client relationships, they are reevaluating their workforce. In the UK, LGPS consolidation has led to redundancies at smaller asset managers unable to secure mandates from mega-pools. Globally, the trend is similar. In the US, active management firms cut headcounts by 5% on average in 2024, with firms like Invesco and Franklin Templeton reducing staff to offset outflows.

Talent is also migrating to larger, scaled players or alternative sectors. In Australia, top investment professionals are joining superannuation funds like Aware Super, which manages AUD 150 billion and offers in-house roles with greater stability. In Europe, private market specialists are in demand at firms like Partners Group, managing USD 150 billion and expanding its infrastructure platform. However, the industry faces a retention crisis. A 2025 CFA Institute survey found that 30% of asset management professionals plan to leave the sector by 2030, citing burnout, cost-cutting, and lack of career progression.

Younger talent is particularly disenchanted. With marketing budgets halved since 2022, firms are cutting graduate programmes and training, pushing Gen Z professionals towards tech or private equity. As Frank Mampaey, a graphic designer in the UK pensions industry, observed, “Institutions are run by humans who crave original, inspiring ideas. Yet, we’re stuck with outdated playbooks that stifle creativity.” Firms that fail to invest in talent risk losing the innovation needed to meet client demands.

Marketing Missteps and the Path to Relevance

Traditional marketing is failing to resonate with consolidated clients. In the UK, LGPS pools and master trusts demand tailored, thought-provoking content, yet many asset managers rely on generic fund updates and macroeconomic emails. Globally, the story is similar. In Canada, pension funds like OTPP (CAD 250 billion AUM) prioritise managers who demonstrate deep expertise in private markets or ESG, not those shouting loudest. In Asia, sovereign wealth funds like GIC are selective, favouring firms with precise, data-driven pitches.

The key to effective marketing lies in understanding the pain points of asset owners, whether it’s navigating regulatory complexity, achieving net-zero targets, or managing illiquid assets and delivering messages that empathise with these challenges. Asset managers must move away from pushing solutions and instead foster dialogue that builds trust. For example, LGPS pools face pressure to invest in UK infrastructure to support “levelling up” initiatives, while Australian super funds grapple with balancing high returns and ESG mandates. Marketing that acknowledges these tensions, rather than offering one-size-fits-all products, resonates more deeply.

Working with media partners who understand these audiences is critical. These partners can amplify targeted content, such as webinars, whitepapers, and roundtables, that address specific challenges faced by asset owners. Amundi’s success stems from its targeted approach, engaging clients through thought leadership on sustainability and cost efficiency, often amplified through trusted channels. In contrast, firms relying on broad-exposure strategies are losing ground.

To reach consolidated clients, asset managers should:

• Develop Persona-Driven Content: Tailor messaging to specific roles, such as chief investment officers or trustees, addressing their unique pressures. For instance, a trustee may prioritise governance, while a CIO focuses on performance.

• Leverage Data and Insights: Use analytics to identify client needs and deliver evidence-based content, such as case studies showing successful private market allocations.

• Engage Through Trusted Channels: Partner with media platforms that have established credibility with asset owners, ensuring content reaches the right audience.

• Foster Two-Way Communication: Host roundtables or Q&A sessions to listen to client concerns, building relationships rather than broadcasting solutions.

The Road to 2035: What the Industry Must Do

By 2035, the global asset management industry will be dominated by scaled players serving consolidated clients. To thrive, firms must act decisively:

1. Embrace Specialisation: Generic offerings won’t suffice. Firms must develop niche expertise in areas like private markets, ESG, or infrastructure, as seen with Partners Group’s USD 27 billion infrastructure platform.

2. Invest in Talent: Retaining and attracting professionals requires competitive salaries, clear career paths, and investment in training. BlackRock’s graduate programme, which hired 300 analysts in 2025, sets a benchmark.

3. Revamp Marketing: Shift from broad campaigns to precise, human-centric engagement. Thought leadership, like Amundi’s ESG whitepapers, builds trust with sophisticated clients through empathetic, challenge-focused content.

4. Leverage Technology: AI and data analytics can enhance performance and client insights. Firms like State Street Global Advisors use predictive models to tailor strategies, gaining an edge.

5. Align with Client Values: Clients demand sustainability and impact. LGPS pools, for instance, are tasked with “levelling up” the UK economy through infrastructure investments. Globally, funds like Norway’s NBIM prioritise net-zero alignment.

The industry’s survival hinges on doing less, better. As Fiona Bassett aptly put it, “The future belongs to those who can simplify complexity and deliver value with precision.” By 2035, only firms that adapt to consolidation, nurture talent, and engage clients with empathetic, targeted marketing will lead the market.

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