Natixis IM: APAC Wealth Managers Least Optimistic on AUM

Natixis IM: APAC Wealth Managers Least Optimistic on AUM

Wealth managers in the Asia Pacific region have the weakest projections for the growth of assets under management in 2025 compared to global peers, according to a survey by Natixis Investment Managers.

Wealth managers in Asia Pacific expect assets under management (AUM) to grow 8.3 percent in 2025, according to the «2025 Natixis Investment Managers Wealth Industry Survey». The region has the slowest forecast compared to the 13.7 percent average growth expected globally.

The potential US-China trade war was cited as the greatest concern by 80 percent of respondents. Compared to global peers, respondents in the region were also the most concerned about US-China relations (46 percent) and the Chinese economy (24 percent). New geopolitical conflicts (38 percent) was named as the top economic concern worldwide.

AI Optimism

While APAC was pessimistic about AUM and economic growth, it was amongst the most optimistic on artificial intelligence (AI). The region had the highest proportion of respondents who agreed that AI is becoming an essential tool for evaluating market risks (74 percent versus 62 percent globally). 74 percent also said they were actively integrating AI in their investment process, including 100 percent in Singapore.

66 percent of respondents in APAC agreed that AI will improve their ability to scale and 60 percent said that the emerging technology had the ability to better personalize service to clients. Still, many were wary of risks with 66 percent worrying that AI is helping to make robo-advice a meaningful competitive threat.

Private Asset Appetite

On choice of investments, private markets are becoming increasingly popular with APAC wealth managers recommending an average allocation of 13.2 percent to the asset class, up from 11.6 percent in 2024. Reduction of portfolio volatility (52 percent) was cited as the top reason to incorporate private assets.

«We are encouraged to see that APAC wealth managers are among the most optimistic on the two key themes that have emerged as strong growth drivers for the industry – AI and private assets,» said Dora Seow, CEO of Natixis IM Singapore. «Given the strong pace of growth in private wealth in APAC, firms will need to align their offering to serve this increasingly sophisticated and discerning client base.»

The survey was based on responses from 520 investment professionals responsible for running investment platforms and managing client assets at leading wealth managers in 20 markets. Within the APAC region, this includes Australia, mainland China, Hong Kong, Japan, Singapore and South Korea.