Growth in asset management isn’t slowing, but who’s capturing it, and how, is shifting fast.
In US passive funds, growth is highly concentrated: the top ten providers now capture more than 95% of net inflows. Retail money is now doing the heavy lifting behind AuM growth, up 61% between 2020 and 2025, as digital-native investors bypass traditional channels. Active ETFs have grown at a 45% CAGR since 2015, charging 37% less than active mutual funds.
Distribution dynamics, not performance alone, are deciding who captures the next wave of flows.
If you would like to know how BCG Expand can help your organisation navigate this shift, reach out to Charles Tanner.
📩 AI is emerging as one of the clearest ways to respond to these evolving dynamics. See how, in BCG’s latest Executive Perspective: The AI-First Asset Manager: Strategy for Growth
