Today, investors have moved away from passive investing. They now demand transparency, agility, and value-based investing. In 2025, ESG-based institutional investment is forecast to reach $33.9 trillion, although the current level of private equity fundraising is down 25% from last year.
For fund managers, it is apparent that outdated systems, sluggish reports, and fragmentary workflows now jeopardize investor trust and loyalty. In 2026, there is no option but to streamline activities, integrate technology with expert service, and provide accurate and transparent results in fund management.
This article examines the wealth management trends that are shaping fund operations and investor strategies that fund managers need to track.
The Context: Why 2026 Is a Turning Point
Wealth management is at a decisive stage. 2026 marks a turning point where operational tenacity and investor transparency shift from competitive advantages to baseline anticipations.
PwC’s forecast suggests that about 16% of asset managers may wind up or consolidate over the next few years, mainly due to unavoidable fee pressures and economies of scale.
At the same time, regulators are increasing scrutiny on the quality of liquidity, reporting, and disclosures across a broad spectrum of organizations and products. This adds another layer of operational burden across processes in the value chain.
Still, this phase of pressure also creates opportunities. McKinsey’s analysis highlights that global assets under management increased from $135 trillion in 2024 to $147 trillion mid-2025. This validates investors’ confidence in the asset management space, especially for companies that provide personalized services, transparency, and a measurable impact.
Although legacy frameworks and broken data flows impede efficiency, momentum is gearing up. In fact, 57% of asset-service leaders consider automation a key enabler to change, with reliance on digital fund administration accelerating effective and efficient scalability.
Therefore, operational tenacity and investor-focused approaches must converge in 2026 to delineate future winners.
Wealth Management Trends Shaping Fund Operations in 2026
By 2026, the emphasis of fund managers will be less on flamboyant instruments and more on doing the fundamentals correctly. Here are the trends in which contemporary fund operations are generating value.
1. Intelligent automation and AI in fund administration
AI and automation are changing fund management workflows. Activities such as reconciliation, NAV production, and exception management are now being augmented by AI solutions, which boost turnaround times and precision. NLP tools also help manage documents, investor queries, and shrink manual tasks.
The trend is visible. EY survey reveals that 95% of asset and wealth administration firms have scaled generative AI adoption across use cases. Meanwhile, 78% are prospecting agentic AI to unravel other operational advantages.
Likewise, McKinsey attests to AI as a transformative force to fuel the next phase of productivity, with an estimated impact of 25-40% of their cost base.
2. Cloud and platformization of fund operations
Fund operations are now shifting from legacy frameworks towards flexible, cloud-based platforms. This change promotes integration, scalability, and consolidated data visibility, while boosting data security through SOC 2 and Type II compliance.
A platform like RAISE epitomizes the benefits of integrating platform and service. This involves ingraining operational competence into technology to break down silos and promote end-to-end efficiency.
Firms that are on board with interoperable platforms stand a chance of handling intricate portfolios without any hitches, achieving smooth data integration, and meeting regulatory requirements and investor expectations.
3. Data governance, transparency, and compliance-as-code
The increased level of regulatory requirements from FCA, SEC, and ESMA means that a strong data governance framework is no longer optional.
Asset managers cannot afford to ignore compliance automation, audit trail transparency, and ESG reporting practices. This is because effective data governance in fund management promotes transparency and trust with investors, ensuring the critical fund processes are auditable and agile.
4. Operational resilience and vendor risk management
Operational resilience transcends internal controls to strategic vendor collaborations. By collaborating with vendors who possess comprehensive industry knowledge and consolidated platforms, such as RAISE, a fund can reduce the number of operational silos, maintain data integrity, and enhance processes throughout its fund operations.
Where once the idea of outsourcing might have been regarded as a threat, contemporary fund administrators now see it as an opportunity to improve their practices. This is achieved by conducting regular standardized vendor due diligence, having well-defined service agreements, and periodic technology audits.
Such measures serve as a defence barrier against system failure, cybersecurity risks, and operational disruptions, ensuring compliance with investor and regulatory requirements.
Investor Strategy Trends Reshaping the Market in 2026
In 2026, fund managers will need to link regulatory technology for funds, services, and operational competence to sustain a competitive edge. Based on the shifting investor demands and operational drifts, here are the fundamental focus elements:
5. Convergence of public and private market allocations
Investors are now allocating their capital across private and public assets, including semi-liquid and hybrid products. This conjunction entails:
・Accuracy in valuations and reporting: Fund managers will need to build systems that give them the right data for valuations and reporting.
・Centralized data: Fund managers should utilize real-time data visibility and a consolidated set of information to act decisively.
・Efficient liquidity management: Fund managers must streamline operational processes to facilitate effective liquidity management and respond to redemption requests.
6. Customization at scale: ESG, tax, and thematic portfolios
Investors increasingly demand customized portfolios that are ESG-aligned, personalized, and tax-efficient. As such, fund managers should focus on:
・Scalable automation: Utilize platforms that uphold scalable automation and portfolio monitoring for individualized reporting, ensuring precision and efficiency.
・Robust data governance: Implement solid data governance structures to guarantee the auditability and validity of SEG and compliance metrics.
・Embedded operational competence: Partner with service providers who provide operational excellence to minimize errors and improve the delivery of customized investor requests.
7. Rise of private credit and yield-seeking strategies
Investors are participating more in private credit funds and structured yield products. Such inclinations necessitate fund managers to:
・Stress testing and cash flow modeling: Use advanced analytics tools to perform stress testing and cash flow modeling, ensuring funds can endure market changes.
・Improved reporting: Provide comprehensive and clear reports that meet regulatory probe and investor expectations.
8. Tech-led and thematic investing
Investors are now matching their portfolios with innovations and sustainability inclinations, driving new data and reporting demands. To support operational excellence, fund managers must:
・Monitor real-time world outcomes: Integrate systems that monitor timely outcomes and build ESG or thematic reporting that echo investor values.
・Timely investor communications: Institute efficient communication channels that allow for prompt updates to investors, promoting trust and satisfaction.
Building the Future of Wealth Management
2026 will be a turning point for wealth management. Investors are seeking clarity, customization, and ESG-friendly products, and these themes are impacting fund operations than ever before. Therefore, fund managers who combine fund management technology and service will be best placed.
Undoubtedly, operational efficiency is now the standard in wealth management trends. Scalable technology, effective data governance, and stable vendor relationships will be key for fund managers as they meet investor expectations and remain competitive in the fund industry.
Solutions like Linnovate’s RAISE fund services platform help managers automate processes, improve reporting, and dissolve operational silos. Discover how RAISE can help your fund achieve operational excellence and deliver exceptional service.
