The financial industry often telegraphs where it is heading through data points and strategic moves by key players. Across surveys, product trends, and high-level industry studies, a consistent theme emerges: the market is moving decisively toward greater personalization, customization, and specialized product offerings.
Those signals aren’t just coming from consultants’ PowerPoints; they are evident in client behavior and competitor actions. Here, we compile the clearest indicators that the era of off-the-shelf homogeneity is ending — and the future belongs to those who can deliver customized and proprietary solutions.
06·01Mass customization becomes mainstream
A few years ago, “mass customization” in asset management might have sounded like jargon. Today, it is a strategic imperative acknowledged by most industry leaders. Accenture’s comprehensive survey of asset managers found that a whopping 80% agree that customization for the masses will be an essential investment strategy in the next five years. This means firms expect to deliver personalized portfolios at scale — tailoring investments to individual client preferences much more than in the past.
With alpha harder to come by, personalization is seen as a compelling alternative way to add value. Rather than chasing excess returns, managers can tailor a portfolio to a client’s unique goals and deliver a better experience even if returns are market-like. The resurgence of SMAs is a case in point — SMA assets have grown 84% since 2010. And more than three-fourths (76%) of asset managers Accenture surveyed believe direct indexing will rise in popularity in the near future. Personalization isn’t a niche offering for a few high-end clients; it is becoming a standard expectation.
06·02Demand for thematic, outcome-oriented, and hard-to-access opportunities
Beyond customization, clients are signaling that they want investment options aligned with specific themes or outcomes they care about. Cerulli’s research highlights that thematic investing is becoming ever more popular with retail and intermediary clients. Whether it is climate change, technological innovation, or demographic shifts, investors are drawn to strategies that tell a clear story and reflect their beliefs.
Another signal is the growth of ESG and sustainable investing mandates: Morgan Stanley’s 2024 survey found that 78% of asset managers expect sustainable investing AUM to increase. Last but not least is the rapidly rising demand for access to private investment opportunities. In recent surveys, over 60% of institutional investors intend to increase private market allocations, and product innovation — such as semi-liquid and evergreen funds — makes private assets accessible to a broader set of wealth clients. Shelf Syndrome firms that rely on generic funds might find the available shelf doesn’t have the precise theme a client wants, whereas an agile firm could spin up a product for it.
06·03The rise of custom models and co-creation
Another clear signal comes from how distribution channels are evolving. Cerulli found that large advisor networks and broker-dealers are leaning on asset managers to create custom model portfolios for their exclusive use. Rather than each manager pushing standard products to a platform, platforms are asking managers to act almost like OEMs — crafting bespoke models under the platform’s specifications. It is a reversal of the old dynamic, and it underscores that co-creation is becoming a norm.
Even big institutional asset owners want in. A recent BNY Mellon survey pointed out that 61% of asset owners say their primary strategy to accelerate digital innovation is to co-create new products or services with financial partners. Your sophisticated clients don’t just want off-the-shelf products from you; they want you to build things with them, tailored to their needs. One-size-fits-all manufacturing is out; collaborative, on-demand manufacturing is in.
06·04Technology and platforms enabling personalization
The market signals aren’t just coming from surveys — they are coming from where money and talent are flowing. Significant investments are being made into tech platforms and agile fintechs that facilitate personalized product creation. In wealth management, major firms have acquired or developed direct indexing platforms — Morgan Stanley buying Parametric, BlackRock buying Aperio, Vanguard launching its own offering.
A cadre of fintech firms offering white-label structuring, fund creation, and digital structured product issuance has emerged, often growing quickly by catering to mid-sized firms that need these capabilities. Established players too, like Allfunds, are expanding into services to help managers launch new funds swiftly — a move that itself validates the broad market shift. The direction is clear: it is as if the industry is drawing a big arrow pointing away from generic shelf strategies toward Assetization as the underlying capability. For a mid-sized manager, leaping to more product ownership isn’t just defensive — it is going where the puck is headed.