Asset Manager Profits Per AuM Fall 19% Since 2018
A PwC report finds fee pressure and legacy technology are squeezing asset managers, with further declines projected through 2030.
Updated on Nov. 3, 2026 in Investing
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PwC reports that profit per assets under management for asset managers has fallen 19% since 2018, and projects a further 9.1% decline by 2030. The report, based on surveys of 150 asset managers and 50 infrastructure providers, examines how firms are responding to shrinking margins.
Why it matters
Falling profit per dollar managed affects how asset managers can fund investment, technology, and innovation, which in turn shapes the services available to investors. The report's findings suggest that decisions about infrastructure made early may determine which firms protect their margins through 2030.
The figures come from a PwC survey of 150 asset managers and 50 infrastructure providers, which found that only 23% of asset managers direct most of their technology budget toward new capabilities. The report does not address how these trends will differ across fund types or regions.
The players
PwC
PricewaterhouseCoopers is a multinational professional services network that publishes industry research and consulting analysis across financial services.
The details
The report identifies four emerging infrastructure archetypes: infrastructure orchestrators, digital and tokenisation platforms, specialist modular providers, and integrated asset managers. Respondents favour hybrid sourcing models combining in-house, bought, and partnered capabilities, with 44% backing this approach, while 68% name hyperscale cloud providers as the main emerging threat.
Timeline
Profit per AuM has fallen 19% since 2018.
PwC published the report on November 3, 2026.
Profit per AuM is projected to fall a further 9.1% by 2030.
Market Dynamics
The 19% fall in profit per AuM since 2018, followed by PwC's projected 9.1% further decline by 2030, marks a sustained squeeze on asset manager margins rather than a single cyclical dip. This trajectory places fee compression and legacy technology costs at the center of the sector's structural pressures over the coming decade.
Investors in asset management products may see pressure on fee structures as managers work to protect shrinking margins. Those holding funds should watch whether managers invest in modern infrastructure or continue to spend heavily on legacy systems, since that choice affects long-term cost and service quality.
The takeaway
Asset managers face a structural margin squeeze, so investors may want to review the total cost of the funds they hold, including management fees and the infrastructure costs embedded in them. Fee levels and the technology behind a fund can matter as much as its strategy over a long holding period.
Further reading
For more on how fund costs and fee structures shape investor returns, explore Investing coverage on Wisevoter.
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