Global Asset Management 2025 Report Flags USD10.5tr Industry Shift

Global asset management 2025 faces a potential USD10.5tr capital shift, McKinsey warned in its “Asset Management 2025” report. Worldwide assets under management rose to a record USD147tr by mid-2025 after the strongest annual gain in a decade, but profitability remains pressured as costs rise and margins stagnate. Individual and insurance investors drove over 80% of flows, with Asia leading growth at 8.4% and Europe rebounding, while institutional channels lagged. Firms with strong distribution, multi-asset scale or alternatives strength captured outsized inflows, but managers reliant on active equity mutual funds continued to lose assets. McKinsey cited three disruptive forces—resurgent home-country bias, mainstreaming of active ETFs, and convergence of traditional and alternative models—as catalysts for USD6tr–USD10.5tr of capital in motion.