Asset Managers Shift Focus to Operational Alpha as Fee Pressures Mount
Event summary
- Citi and CREATE-Research released a report on June 18, 2026, highlighting a shift in asset management innovation from product to operational excellence.
- Survey of 221 asset managers across 26 countries managing $34.8 trillion in AUM found 62% prioritize process innovation over product innovation (28%).
- 57% of respondents see mutual fund to ETF conversions as delivering the most client value.
- 44% of asset managers view partnerships as a strategic capability to build scale and share risk.
- Citi commits over $2 billion annually to platform modernization for real-time securities and cash solutions.
The big picture
The report underscores a strategic pivot in asset management where operational efficiency is becoming the new competitive battleground. As fee pressures intensify post-2008, firms are prioritizing process and organizational innovation over product development. The $34.8 trillion AUM surveyed highlights the scale of this transformation, with digital assets and real-time solutions emerging as key differentiators. Partnerships are evolving from mere outsourcing to strategic enablers of innovation and scale.
What we're watching
- Operational Alpha
- How asset managers will balance short-term cost pressures with long-term digital transformation investments.
- Partnership Strategy
- Whether asset managers can successfully scale capabilities through third-party collaborations.
- ETF Growth
- The pace at which mutual fund to ETF conversions will accelerate as the preferred investment vehicle.
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