Investor strategies in a shifting landscape

In today’s uncertain environment, investors are recalibrating their strategies to navigate volatility and structural change. Geopolitics remains a consideration, but it is no longer the primary driver of portfolio decisions. Instead, macroeconomic fundamentals and broader structural trends are taking center stage. Investors are shifting their focus away from short-term headlines and toward long-term structural themes, emphasising diversification, resilience, and positioning portfolios to capture secular growth opportunities in areas such as technology, sustainability, and demographic change.

High Net Worth individuals (HNWIs) and Mass Affluents are projected to grow rapidly in the coming years. HNWIs are increasingly seeking tailored portfolio management, estate and succession planning, and exclusive access to private markets. Meanwhile, Mass Affluents are fueling growth through their demand for broader diversification and low-cost, digital-first engagement models.

The ascent of private markets

Private markets are increasingly entering the mainstream, reshaping how capital is deployed and accessed. As companies choose to remain private for longer, investors are finding fewer opportunities in public markets. This shift has expanded the opportunity set in private markets.

By 2030, private markets are projected to account for more than half of global asset management revenues, reaching 51.3%. Their rapid ascent reflects strong investor demand and structural industry shifts, with private market managers already capturing 44.2% of total industry revenues in 2024, a 9.2% increase since 2018. Global investable wealth is expected to surpass USD 481 trillion by 2030, and Mass Affluents as well as HNWIs are increasingly channelling capital into private markets. Operating in a less commoditised, faster‑moving environment, private market managers have set the benchmark for industry profitability. They generally command higher management fees than traditional mutual funds and ETFs, while carried interest and incentive structures for some asset classes further amplify revenues. Together, these dynamics reinforce the sector’s momentum and position private markets as the dominant revenue driver of the industry by 2030.

Historical evolution of global AWM revenues (%)

_{Source: PwC’s AWM Revolution 2025}

Globally, wealth investors are adopting institutional‑style diversified portfolios that balance short, medium, and long‑term private investments. Yet in Asia, barriers to broader participation in private markets remain, though platforms are stepping in to address these challenges by streamlining access, reducing costs, and improving efficiency for wealth managers and their clients. At the same time, product structures designed to bridge the gap between investor demand for liquidity and the long‑term nature of private market investments are gaining traction. Innovative fund structures are reshaping access to private markets by introducing ongoing subscription and redemption mechanisms. Unlike traditional closed‑end funds, which lock investors in for a definitive period, these semi‑liquid vehicles allow clients to enter and exit at regular intervals, often quarterly. This shift balances exposure to long‑term private assets with improved liquidity, making them particularly attractive to affluent investors who value both sophistication and convenience.

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Bridging capital and expertise

The relationship between insurers and asset managers has been evolving rapidly, marked by increasing collaboration and convergence across the financial services landscape. Asset managers are playing a prominent role in helping insurers meet their long-term objectives, whether through designing tailored investment strategies or expanding access to private markets.

Partnership models between insurers and asset managers vary widely, reflecting the diverse strategies and structures across the industry. Some insurers maintain in‑house asset management divisions, others outsource, and some have divested or even been acquired by asset managers or private equity firms. These developments blur the boundaries between the two sectors, underscoring the depth of convergence underway. Looking ahead, insurers are expected to leverage a mix of in‑house expertise and external partnerships to optimise efficiency and cost.

Balancing risk and return

One of the most significant shifts has been in insurers’ investment strategies. The prolonged low‑interest rate environment pushed insurers to move away from capital‑intensive products and toward private markets in search of higher yields. This trend has persisted, suggesting a structural change in preferences rather than a temporary adjustment. While private markets offer diversification, the potential for higher risk‑adjusted returns and better alignment with liabilities, they also introduce new risks. Asset managers are increasingly called upon to help insurers navigate these complexities, offering solutions that balance return with prudent risk management.

Private markets have become a focal point of collaboration between insurers and asset managers. Insurers face barriers such as limited internal expertise, regulatory scrutiny, and operational challenges in managing private market assets. Asset managers can help overcome these hurdles by providing access, due diligence, and structuring investments that meet solvency requirements. Insurers tend to seek partners with either significant scale and access to deal flow, or a distinctive niche that no one else can offer. In both cases, transparency and a proven track record in private markets are essential to building trust and sustaining long-term collaboration. Common best practices include strengthened governance frameworks and greater transparency to mitigate the risks associated with increased allocations to private market assets.

Drivers of partnerships

Partnerships between insurers and asset managers are shaped by several factors. Regulatory navigation is a key driver, as evolving solvency rules and capital requirements demand sophisticated approaches to portfolio construction. Product innovation is another, with collaboration enabling insurers to broaden their offerings, particularly in retirement solutions. From the asset manager’s perspective, success hinges on demonstrating robust risk management capabilities and expertise in private markets–areas where insurers often seek external support, given most already have established strengths in public markets and liquid solutions. Going forward, the regulatory landscape is likely to tighten further, with heightened scrutiny of private market access, evolving solvency frameworks, and pressure on fee models. These dynamics will shape how insurers and asset managers work together in the future, reinforcing the importance of collaboration in navigating market challenges and seizing new opportunities.

Beyond insurers: Role of asset managers

Asset managers, as product manufacturers, also engage with wealth gatekeepers such as private banks, family offices, and distributors to reach end investors beyond insurers. This market structure presents high entry barriers, as gatekeepers safeguard client wealth and rely heavily on trust and quality. Their evaluation extends well beyond performance, encompassing operational robustness, governance standards and servicing capabilities. Increasingly, they demand tailored solutions, from bespoke mandates to thematic or private market strategies. Larger asset managers may benefit from scale and brand recognition, while boutique firms can differentiate through niche expertise. Ultimately, gatekeepers value asset managers who demonstrate resilience across market cycles and a disciplined, long‑term approach, reinforcing the importance of credibility, consistency, and innovation.

Key criteria’s in assessing asset managers

_{Source: PwC}

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Strategic boldness in the age of AI

Artificial Intelligence (AI) has become a constant presence in everyday conversations and strategic discussions, and it is frequently highlighted as a catalyst for technological transformation. What is increasingly evident is that AI will not only drive sweeping change across industries but also serve as a critical source of competitive advantage and a cornerstone of future growth strategies. Today, many strategic leaders are choosing to pursue growth priorities despite an uncertain backdrop and outlook.

At present, few organisations are realising measurable outcomes from their AI initiatives. This is expected to shift rapidly. As companies scale pilot projects into enterprise-wide applications and identify new use cases, adoption will accelerate. Equally important, as employees and leaders become more educated about AI’s capabilities and limitations, the ability to integrate it effectively into operations will expand. The near-term trajectory points toward a tipping point–AI moving from experimental deployments to mainstream impact. Organisations that invest early in building capabilities, fostering talent, and embedding AI into their strategic vision will be positioned not just to adapt, but to lead.

The expanding role of AI in asset and wealth management

AI is rapidly emerging as a force in both investment strategies and client interactions within the financial services sector. While adoption is still in its early stages, the prevailing model today is the “human-in-the-loop” approach, where human judgment remains central to decision-making. At the same time, AI is being deployed to monitor transactions, enhance risk modelling, and automate repetitive workflows–freeing up valuable resources that can be redirected toward higher-value strategic tasks.

Talent has been central to the industry’s success for decades, and people will remain integral in the age of AI. Going forward, specialised talent with domain expertise will play a critical role in supervising both AI development and governance, ensuring that the use of AI aligns with expectations for responsibility and high-quality outcomes.

From an investment perspective, although current AI valuations may appear elevated, conviction in the sector remains strong. This confidence stems from the recognition that AI represents the next stage of technological evolution, one that will fundamentally reshape industries and business models. As a result, investors continue to commit capital to the space, viewing AI not merely as a tool but as a market creator. The potential applications of AI are vast, spanning sectors such as healthcare, retail, e‑commerce, financial services, real estate, and manufacturing, among many others. Each of these industries stands to benefit from AI’s ability to drive efficiency, unlock new insights, and enable innovative products and services. For both investors and businesses, the message is clear. AI is poised to move from promise to mainstream impact, reshaping competitive dynamics and opening new avenues for sustainable growth.

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From concept to reality

The financial industry is undergoing a profound transformation. Financial institutions are exploring on-chain models for payments, custody, and asset administration, transforming how the industry operates with tokenisation playing a role in some aspects of this evolution. Tokenisation goes beyond digitalising existing systems. It enables fractionalisation, liquidity and new forms of financial innovation built on open blockchain architecture.

Tokenisation is no longer abstract and its reality is accelerating at pace. However, tokenisation must adapt to jurisdictional regulations, investor preferences and issuer-specific needs. With regulatory momentum, technological innovation, and market demand converging, the path toward a tokenised future is accelerating. Challenges remain, but the promise of efficiency, and global interoperability makes one thing clear: the future of finance will be borderless, digital and on-chain.

Building the foundations of tokenised finance

Investor education across product, risk, and compliance functions has proven essential for adoption. This cultural shift is enabling firms to build ecosystems that support tokenised assets. AI is also playing a pivotal role, enabling atomic settlement and streamlining operations such as collateral management. By removing scalability constraints, it unlocks automation beyond traditional rules-based systems, paving the way for resilient and efficient digital infrastructure.

When it comes to which tokenised funds are gaining traction, tokenised money market funds are spearheading adoption. Demand is being fuelled not only by traditional clients seeking efficiency, but also by DeFi natives and on‑chain participants eager to leverage blockchain‑based opportunities. Yet, achieving mass adoption will require innovative and cost-efficient distribution models, deep and liquid secondary markets, and secure custody solutions.

Tokenised investment funds AUM

Tokenised funds are set to grow to USD 715 billion by 2030, pressuring asset managers to integrate blockchain-enabled products to capture this growing opportunity.

Hong Kong as a tokenisation hub

Hong Kong is moving well ahead of most jurisdictions in digital asset development, supported by robust regulatory frameworks, leading players actively testing products locally, and a growing talent pool. Although market liquidity and depth remain in the early stages, Hong Kong already stands out as Asia’s clear leader, positioning itself as a hub for corporate treasury and tokenised fund activity. Regulators are taking a proactive stance, with consultations on custody and dealing concluded recently and ongoing discussions on asset management and advisory. 

Blockchain identity: A foundation for trust

Blockchain technology is evolving beyond financial products to enable blockchain anchored digital identities, secure and portable credentials that allow seamless participation in on chain ecosystems. These identities embed trust and verification directly into the blockchain, streamlining access to services. At the same time, tokenisation is opening new asset classes to broader groups of investors, enhancing value portability and enabling real time, transparent settlement across complex asset types. Together, these advances point toward a future where financial interactions are instantaneous, personalised, and frictionless. Ultimately, blockchain is not just a financial innovation but a structural transformation, enabling a world where identity, trust, and value are universally accessible, interoperable, and instantly exchangeable.

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Hong Kong’s Asset & Wealth Management Conference 2026 brought together clients and industry players to explore the dynamic and evolving industry landscape across the region. The conference offered insights into the forces shaping the industry’s future, sparking dialogue and fostering collaboration.

The conference opened with remarks from Josephine Kwan, PwC’s Hong Kong Asset & Wealth Management Industry Leader, who set the stage by outlining how economic, technological, and geopolitical shifts are redistributing business value across industries over the next decade, and how the AWM sector currently faces a paradox–as profitability is increasingly under pressure even as assets continue to rise.

Jackie Yan, PwC China’s Economist then provided an in-depth analysis of the global macroeconomic environment with a particular focus on the Mainland China’s outlook. The discussion covered recent policy shifts, the current trade environment, and the role of Artificial Intelligence in boosting labour productivity.

The first panel brought together voices from a global private bank, a family office, and a fintech platform to examine the fast-growing wealth segment. Panelists explored how investor preferences are shifting and how firms are revisiting their product offerings and strengthening distribution capabilities to meet evolving client needs.

The second panel turned to the increasing convergence across financial services, focusing on how asset managers and insurers are collaborating. Speakers discussed the motivations behind these partnerships, the challenges of navigating regulatory and risk-based considerations, and the opportunities for driving product innovation.

The conference concluded with a fireside chat on tokenisation, featuring pioneers who have firsthand experience in bringing tokenised products to life. The discussion also highlighted how Hong Kong’s proactive regulatory environment, coupled with strong industry engagement, is positioning the city as a leader in financial innovation for years to come.

This year’s conference underscored the importance of collaboration, adaptability, and innovation in navigating the future of the AWM Industry. We are committed to continuing the dialogue and supporting both the industry and its participants as they pursue sustainable growth and long-term success.

A look back at our Asset and Wealth Management Conference 2026

Featured speakers and PwC professionals (by surname）

We extend our sincere gratitude to the subject matter experts for contributing such thoughtful, experience-led perspectives that enriched the dialogue and deepened the collective understanding of the industry’s future.

Further reading

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