Change 2025

The measure of a moving industry

251 C-suite fund managers and 200 institutional investors share insights on the year ahead 

Download the full report

2025 – Optimism for growth prevails against a backdrop of mounting pressures.

Market volatility continues, yet Carne’s second annual Change report shows reasons to be optimistic: fund managers and institutional investors are united in predicting significant growth in 2025. 

We surveyed 251 C-suite executives in fund management and 200 institutional investors, collectively responsible for more than $4.6 trillion AUM, on their strategy for the year ahead. The results? While there’s continued bullishness about asset growth, new markets, and new products – fund managers are under pressure to be more transparent in how they operate – for regulators and investors alike. That’s happening against a backdrop of economic pressures, tightening margins and fierce competition  – all at a time when the complexity of going to market has arguably never been higher. 

A preview of what’s inside: 

Going for growth: Predictions from managers and investors alike for a growth fuelled 2025, including the assets, markets and domiciles they expect to drive growth

• 81% of managers expect increased inflows to their funds in 2025, with 83% of institutional investors expecting stock market volatility to rise this year – fuelling demand for private markets as a source of downside protection and diversification

Optimising through outsourcing: Operational resource repositioned in response to industry consolidation, assessing in-house capabilities, and the role of outsourcing.  

• Nine in 10 (88%) fund managers expect to grow their use of third-party service providers over the next 12 months as they respond to increasing regulatory complexity 

Surge in scrutiny: Regulation and governance pushed to the top of the agenda with regards to compliance and client expectations 

• 82% of institutional investors have rejected a fund manager based on poor corporate governance, with 29% saying such rejections are increasing dramatically 

Embracing evolution: Technology modernisation, the use of AI, automation, and digital tools in investment decision making 

• 92% of fund managers are using AI to support investment strategies. Everyone surveyed expects to use it within the next two years 

Download Change 2025 for detailed insights on how institutional investors’ expectations are shifting, and the strategies fund managers are using in search of growth under pressure.