Distribution overtakes performance as growth driver, Broadridge

Broadridge Financial Solutions’ 2026 Global Demand Model, authored by Nabeel Ansari, finds asset managers shifting emphasis from investment performance to distribution. The report projects professionally managed assets will grow from $127 trillion in 2025 to $164 trillion by 2028.

The report says organic growth will remain positive globally but firms must attract net new money to meet those projections. It cites geopolitical uncertainty, changing investor preferences and tougher competition as factors shaping growth strategies.

Broadridge identifies distribution capability as a growing competitive edge. “In an increasingly crowded marketplace, distribution alpha is emerging as a critical success factor, with firms evolving from investment-led organisations to distribution-led organisations in pursuit of growth,” Ansari writes. The report highlights distribution networks, product innovation and access to new investor segments as primary levers for expansion.

A major trend is a shift to individual savers. Ansari notes that in the United States many people must finance retirement and other costs themselves, driving demand for asset management services. The report says other markets with larger state pension systems are beginning to open and require more investor education. Margin pressure is pushing managers to target retail clients, who now have growing influence on asset flows.

Exchange-traded funds are central to managers’ distribution strategies. Broadridge reports active ETFs are expanding in Europe and the Asia-Pacific region as managers launch new products and compete for flows. The report finds many active ETFs charge management fees in the 16–30 basis point range for enhanced strategies, which raises pressure on new entrants to scale quickly.

Regional platform structures affect how products reach retail investors. The report attributes Germany’s ETF uptake to broad retail savings platforms and large, recognisable low-cost brands. It describes the United Kingdom’s platform landscape as built around OEICs, prompting firms to pool resources and update infrastructure to list ETFs. The report links slower UK growth in part to a sustained cost-of-living squeeze on retail investors.

Broadridge flags tokenisation as a potential alternative to ETFs for some functions, particularly private market exposure using private chains and tokens. Ansari points to barriers including limited use of digital wallets and low familiarity with token-based investing, and he adds he does not expect tokenisation to replace active ETFs in the near term.

The report recommends that managers invest in distribution infrastructure and adjust product architecture to capture individual savers and scale low-fee ETF offerings.