The shift from margin pressure to market dominance: why ETFs and private markets are redefining asset management

Compared to previous years, AuM has grown significantly; however, revenue margins remain under pressure, and expected economies of scale have not yet translated into improved profitability. At the same time, the European market is clearly shifting toward ETFs - driven in particular by Germany - with younger generations increasingly making investment decisions based on cost and return. This underscores the need to systematically evolve the product offering from a model dominated by actively managed funds toward ETF-led solutions, while capturing higher-margin opportunities, particularly in private markets.