NEW YORK (December 4, 2025) – ISS Market Intelligence (ISS MI), a leading provider of data, analytics, insights, media, and events solutions to the global financial services industry, today announced the release of its annual State of the Market report. Now in its 20th year, the report continues to evolve with the industry and is being launched this year in a new three‑part format. Available to U.S.-based subscribers via ISS MI’s MarketSage platform, the report offers a comprehensive outlook on long‑term fund trends and distribution dynamics for the 2026–2030 period.
The report explores the drivers behind the trends reshaping the industry, their implications for asset managers, and outlines tomorrow’s revenue opportunities. It highlights and does a deep dive into several key themes shaping the industry, including:
- Planning for a slower growth environment
- Sales and distribution matter more than ever
- More balanced asset class growth ahead
- ETFs dominate sales; active ETFs surge amid product innovation
- Active funds remain the industry’s revenue backbone
- In the product development game, to the victors go the spoils
“As asset managers look toward 2026 and the coming five years, they should prepare for a more modest growth backdrop. With U.S. equity returns normalizing, the industry is unlikely to enjoy the same tailwinds that propelled results in the past decade—particularly in mutual funds,” said Christopher Davis, U.S. Head of Research and author of the report. “The upside is that a more balanced market will spread revenue opportunities across more asset classes and product types. However, taking advantage of those openings won’t be automatic. In this environment, firms will need to make deliberate strategic choices about where they can build true product and distribution advantages. Those that do will be best positioned to turn a slower market into a more durable one.”
This year’s report notes that U.S.-based asset managers entered 2025 facing turbulence from sweeping tariffs and fears of a global trade war. Despite this backdrop, redemptions were mild—just $39 billion in April—and sales rebounded quickly. In fact, the report highlights that 2025 is on pace to be the strongest sales year since the “bonanza” of 2021, marking a year of solid, if unspectacular, asset growth.
Looking ahead, the report highlights that long‑term fund assets in the U.S. market are expected to reach $48 trillion by 2030, with growth expected at a slower 6.7% annual rate compared to an estimated 8.5% during 2021–2025. U.S. equities, which have captured the lion’s share of asset growth in recent years, may no longer dominate. Against this backdrop, ISS MI’s research team sees a silver lining, noting that this environment can foster a more balanced distribution of opportunities across asset classes. This shift can create openings for managers in fixed income, alternatives, and other innovative product structures to capture new market share.
Section One of this year’s report is now available here to U.S.‑based MarketSage subscribers. Upcoming additional sections will explore product innovation, including the fast‑evolving active ETF arena and competing structures, and will examine how partnerships and distribution strategies are reshaping the competitive landscape.
Since its launch in 2005, ISS MI’s State of the Market report has consistently provided in-depth coverage on major industry issues, including the growth of fee-based advisor business, the proliferation of new product structures ranging from ETFs to SMAs to CITs, and the emergence of active ETFs as a key product battleground, reinforcing its role as a trusted guide for asset managers navigating an evolving investing landscape.
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 (ISS 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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