According to a study released in March 2026 by PwC, global assets under management (AUM) are projected to surge from $139 trillion today to $200 trillion by 2030, yet the asset and wealth management industry confronts a stark profitability paradox that threatens conventional business models.

Despite this massive growth opportunity, profit margins continue their downward spiral. Profit as a share of assets under management has plummeted 19% since 2018 and is expected to decline another 9% by 2030, according to PwC’s latest industry research. A staggering 89% of asset managers report profitability pressure over the past five years, with nearly half describing it as high or very high.

The industry’s cost-to-income ratio remains stuck at 68%, meaning expenses consume more than two-thirds of every revenue dollar. Traditional cost-cutting measures have proven ineffective, while fee competition intensifies across all segments. Only one in four managers express confidence in their profitability strategy.

Value pools are shifting dramatically toward passive investments, which will grow at a 10% compound annual growth rate to reach $70 trillion by 2030. The Asia-Pacific region leads geographic expansion at 6.8% annual growth, driven by wealth creation in India and intergenerational transfers.

According to PwC, the winners through 2030 will be firms that fastest integrate AI technologies and tokenization to improve service whilst cutting costs, rather than simply chase asset flows.

A comprehensive version of the report is available here: https://www.pwc.com/gx/en/issues/transformation/asset-and-wealth-management-revolution.html