NEW YORK (September 18, 2025) – ISS Market Intelligence (MI), a leading provider of data, analytics, insights, media, and events solutions to the global financial services industry, has released the latest installment in its Windows into Asset Management series, titled “Reading the Revenue Tea Leaves: What’s Working for Asset Managers.” Now available to US-based subscribers via its MarketSage platform, the report offers a data-driven analysis of how legacy and newly launched products—across active and passive strategies, mutual funds, and ETFs—are contributing to revenue growth in today’s evolving landscape.
“Every asset manager today is asking the same question, and that is: How do I reignite revenue growth?” said Christopher Davis, U.S. Head of Research and author of the report. “For many, the answer lies in new product development. However, as we tell our clients, there’s no universal formula. Some firms succeed by innovating within their existing shelf, while others thrive by launching new products and strategies frequently and boldly. The key is aligning innovation with identity. This report also highlights how a few leading managers are doing just that, and the strategies behind their success.”
Two Strategic Models for Growth
The research outlines two dominant approaches to asset management product strategy, the Venture Capital Model and the “Warren Buffett” Model, as identified by ISS MI’s team of global wealth experts.
The Venture Capital Model: Characterized by launching a broad pipeline of high-potential ideas, this approach accepts the premise that not all launches will reach their desired scale. Those that breakout, however, have the potential to not only drive significant revenues today, but can be money makers long into the future. The seven-page report outlines the key capabilities required to make this model work effectively.
The “Warren Buffett” Model: Focused on refining and repackaging a smaller set of core strategies, this approach emphasizes:
- Long-term evolution of existing products
- Strategic distribution expansion
- Brand-aligned innovation
- Patience and precision over short-term trend chasing
Additional Key Findings from the Report
- Active ETF revenues surged 27% in the first half of 2025, driven by strategy reinvention and investor demand for income and downside protection.
- Legacy products still matter, as they accounted for roughly 70% of industry revenue for the 12 month period ending June 2025, underscoring the importance of shelf management and distribution.
- New product success is rare but rewarding: Only 20–30% of active ETFs launched since 2015 have crossed the $1 million revenue threshold within three years. Those that do often generate 10–30x more revenue than subscale peers.
Amid continued fee compression and shifting investor appetites, the report provides actionable insights for asset managers seeking to stay competitive. It builds on ISS MI’s foundational 2024 global whitepaper, “Growing Revenues, Not Assets: New Name of the Game,” which explored revenue dynamics across the U.S., U.K., and European markets.
For more than three decades, ISS MI’s team of global wealth experts has delivered thorough, unbiased, and actionable business intelligence. To learn more, please visit https://marketsage.issmarketintelligence.com/.
About ISS Market Intelligence
ISS Market Intelligence (MI) is a leading provider of data, insights, and market engagement solutions to the global financial services industry. ISS MI empowers asset and wealth management firms, insurance companies, distributors, service providers, and technology firms to assess their target markets, identify and analyze the best opportunities within those markets, and execute on comprehensive go-to-market initiatives to grow their business. Clients benefit from our increasingly connected global platform that leverages a combination of proprietary data, powerful analytics, timely and relevant insights, in-depth research, as well as an extensive suite of industry-leading media brands that deliver unmatched market connectivity through news and editorial content, events, training, ratings, and awards.
About ISS STOXX
ISS STOXX GmbH, through its group companies, is a leading provider of comprehensive and data-centric research and technology solutions that help capital market participants identify investment opportunities, detect qualitative and quantitative portfolio company risks, and meet evolving regulatory requirements. With roots dating back to 1985, we today deliver world-class benchmark and custom indices across asset classes and geographies and serve as a premier source of independent corporate governance, sustainability, cyber risk, and fund intelligence research, data, and related offerings. Our products and services give clients the scale and leverage they need to grow their business more effectively and efficiently. ISS STOXX, which is majority owned by Deutsche Börse Group, is comprised of more than 3,800 professionals operating across 30 global locations in 20 countries. Its approximately 5,500 clients include many of the world’s leading institutional investors who turn to ISS STOXX for its objective and varied offerings, as well as companies focused on ESG, cyber, and governance risk mitigation as a shareholder value enhancing measure. Clients rely on ISS STOXX’s expertise to help them make informed decisions to benefit their stakeholders.
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Hayley Tarleton
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press@issmarketintelligence.com
