Northern Trust Survey: Asset Managers Sharpen Focus on Core Capabilities to Drive Growth

Global asset managers are concentrating resources on core capabilities, accelerating outsourcing of non-core activities, tightening cost controls and expanding use of artificial intelligence (AI) as they pursue more disciplined growth, according to Northern Trust’s (Nasdaq: NTRS) biennial global survey of asset managers.

Northern Trust’s report, Driving Growth in Asset Management 2026, is based on a survey of 300 CEOs, CIOs, operations directors and similar leaders at asset management firms across North America, EMEA (Europe, Middle East Africa) and APAC (Asia-Pacific). Conducted in Spring 2026 by InvestOps Insights for Northern Trust, the study examines how asset managers’ strategies have changed since 2024 amid market volatility, fee pressure, operational complexity and the emergence of AI.

Key findings at a glance

• Focus, simplify and scale: Asset managers prioritizing product expansion fell to 47% from 60% two years earlier, while product reduction as a priority rose from 5% to 28% of respondents.
• Outsourcing takes hold: Managers planning to achieve priorities by outsourcing non-core activities more than doubled, rising from 18% in 2024 to 39% in 2026.
• Cost control strategies are evolving: Offshoring emerged as the leading cost-control measure, cited by 69% of respondents, while outsourcing non-core activities rose to 42%.
• AI is entering the operating fabric: Every respondent reported deploying AI in some form, led by use cases in data accuracy and quality control, document management and research.
• Distribution is becoming more targeted: More than half of respondents plan to target new client types and expand into new global markets to support growth.

"Asset managers are pursuing growth with greater discipline and a sharper focus on the areas where they can differentiate," said Ryan Burns, head of Asset Managers and Private Markets, Americas at Northern Trust. "Rather than pursuing broad-based expansion, firms are directing resources toward investment expertise, client outcomes and distribution, while extending successful strategies through vehicles such as ETFs, semi-liquid funds and collective investment trusts."

Outsourcing has become an increasingly important component of asset managers' operating models. As firms contend with cost pressures and rising complexity, respondents reported greater reliance on outsourcing to streamline operations, access specialized capabilities and support long-term scalability.

"Managers are doing more with fewer, more strategic partners," said Angelo Calvitto, head of Asia Pacific at Northern Trust. "The goal is not only lower cost, but a more straightforward operating model with stronger control, better quality and the scale to support future growth."

The survey also highlights the growing importance of data, analytics, and investment decision support. Nearly half of respondents identified consolidating data from multiple sources as their biggest data challenge, while sourcing and aggregating investment analytics emerged as the leading challenge facing front-office teams. Against that backdrop, every respondent reported using AI in some capacity, underscoring the industry's focus on improving decision-making and operational effectiveness through technology.

"AI is moving from experimentation to implementation across the industry," said Nick Gilbert, head of Asset Servicing, EMEA at Northern Trust. "But its value will depend on the quality, governance and accessibility of the data beneath it. This is not just a technology issue; it is an operating model and resilience issue."

The whitepaper, “Driving Growth in Asset Management 2026” can be accessed here.

Northern Trust provides a complete suite of asset servicing solutions for global investment managers including fund administration, global custody, investment operations outsourcing and data solutions – supporting a range of complex investment strategies across the full spectrum of asset classes.

About Northern Trust

Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of wealth management, asset servicing, asset management and banking services to corporations, institutions, affluent families and individuals. Founded in Chicago in 1889, Northern Trust has a global presence with offices in 24 U.S. states and Washington, D.C., and across 22 locations in Canada, Europe, the Middle East and the Asia-Pacific region. As of June 30, 2026, Northern Trust had assets under custody/administration of US$20.0 trillion, and assets under management of US$2.0 trillion. For more than 135 years, Northern Trust has earned distinction as an industry leader for exceptional service, financial expertise, integrity and innovation. Visit us on northerntrust.com. Follow us on Instagram @northerntrustcompany or Northern Trust on LinkedIn.

Northern Trust Corporation, Head Office: 50 South La Salle Street, Chicago, Illinois 60603 U.S.A., incorporated with limited liability in the U.S. Global legal and regulatory information can be found at https://www.northerntrust.com/terms-and-conditions.

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