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U.S. Wealth Managers Post 12.5% AUM Growth, But AI, Generational Transfer and Market Volatility May Slow Momentum
A fresh pulse from Natixis Investment Managers shows U.S. wealth managers have pushed assets under management (AUM) up by 12.5 % over the past year, the strongest growth recorded in the firm’s survey history.
The study, which polled 300 U.S. advisors as part of a broader survey of 2,950 financial professionals in 23 countries, reports a median AUM of $218 million and an average AUM of $5.7 billion. While the 12.5 % growth rate is a historical high, respondents expect the pace to dip to 10.7 % over the next year before rising again to 11.2 % annually over a three‑year horizon.
Artificial intelligence (AI) is a central theme in the survey. Seventy‑two percent of U.S. advisors say traditional financial professionals are their biggest competitors today, but only 26 % expect that to remain true in five years. In that same period, 35 % anticipate that AI‑powered self‑directed tools will become the greatest competitive threat. The majority of advisors are already experimenting with AI: 70 % believe AI tools can free up time spent with clients, and 76 % think that adopting AI will give them a competitive edge. However, 58 % report that integrating AI into day‑to‑day workflows has been more difficult than expected.
Despite the promise of AI, 91 % of U.S. respondents say they are leaning into personal relationships and accountability when positioning themselves against technology. Only 12 % believe AI will put them out of business, compared with 30 % of global advisors surveyed.
Direct indexing is highlighted as a differentiator. Seventy‑seven percent of U.S. advisors say the strategy can deliver after‑tax alpha, and 67 % view it as a key tool for meeting rising client expectations for personalization.
The largest wealth transfer in modern history is already underway. Advisors report retaining a spouse’s assets 75 % of the time following a client transition, but that rate falls to 56 % for next‑generation heirs and 44 % when an advisor manages assets for both a parent and a child. Forty‑nine percent of U.S. advisors say they are increasingly worried about losing assets through wealth‑transfer events. Earlier Natixis research found that 41 % of U.S. advisors view the great wealth transfer as an existential risk, and that nearly half of U.S. investors who expect to inherit wealth say they do not plan to keep their benefactor’s advisor.
The wave of advisor retirements is adding pressure. Seventy‑eight percent of U.S. respondents see advisor retirements as a significant growth opportunity, even as 65 % acknowledge that it will widen the advice gap. U.S. advisors appear more optimistic than their global peers about bridging the demographic gap: 37 % say they are struggling to attract younger advisors, compared with 51 % globally.
Seventy‑four percent of U.S. advisors say they are focused on proactively capturing next‑generation assets. Strategies include adding specialized planning services, deploying digital tools, exploring social‑media prospecting, and hiring younger advisors. More than half (52 %) believe next‑generation investors will expect access to private markets as a standard part of an advisory relationship, and 60 % anticipate that the current administration will clear a regulatory path for defined‑contribution plans to include private assets within the next 12 months.
In the near term, market volatility is the most immediate concern. Sixty‑five percent of U.S. advisors rank rising geopolitical uncertainty among their top economic worries, and 89 % expect further market turbulence because of it. The uncertainty has already altered client behavior: 64 % of advisors report that many clients want to hold more cash.
Advisors say the three biggest investment mistakes clients are making right now are: reacting emotionally to headlines (73 %), attempting to time the market (62 %), and maintaining unrealistic return expectations (53 %). Inflation risk is also a major concern. Nearly half of U.S. advisors rank inflation among their biggest worries, and 55 % say oil‑market volatility makes an interest‑rate increase more likely than a cut in the second half of 2026. About 61 % argue that the need to outpace inflation over time is one of the strongest reasons for clients to remain in equities.
Recent industry activity includes LPL’s acquisition of a $500 million Tribute Financial team from United Planners, a Fidelity veteran launching an independent firm called Osaic OSJ Innovative Financial Group, and Citizens Bank hiring a sports‑and‑entertainment trio that previously managed $800 million for Morgan Stanley. Dimple Shah, formerly with Osaic, has joined Humanity Labs to drive its AI push. The SEC’s enforcement division is reportedly probing private‑equity continuation vehicles for potential conflicts of interest, valuation, and disclosure issues.
The survey underscores that the multi‑trillion‑dollar transfer of assets between generations is no longer a future planning concern – it is an immediate business challenge. While U.S. advisors remain optimistic about sustaining growth, the convergence of AI adoption, generational wealth transfer, market volatility, and regulatory change will shape the next phase of the wealth‑management industry.
The study, which polled 300 U.S. advisors as part of a broader survey of 2,950 financial professionals in 23 countries, reports a median AUM of $218 million and an average AUM of $5.7 billion. While the 12.5 % growth rate is a historical high, respondents expect the pace to dip to 10.7 % over the next year before rising again to 11.2 % annually over a three‑year horizon.
Artificial intelligence (AI) is a central theme in the survey. Seventy‑two percent of U.S. advisors say traditional financial professionals are their biggest competitors today, but only 26 % expect that to remain true in five years. In that same period, 35 % anticipate that AI‑powered self‑directed tools will become the greatest competitive threat. The majority of advisors are already experimenting with AI: 70 % believe AI tools can free up time spent with clients, and 76 % think that adopting AI will give them a competitive edge. However, 58 % report that integrating AI into day‑to‑day workflows has been more difficult than expected.
Despite the promise of AI, 91 % of U.S. respondents say they are leaning into personal relationships and accountability when positioning themselves against technology. Only 12 % believe AI will put them out of business, compared with 30 % of global advisors surveyed.
Direct indexing is highlighted as a differentiator. Seventy‑seven percent of U.S. advisors say the strategy can deliver after‑tax alpha, and 67 % view it as a key tool for meeting rising client expectations for personalization.
The largest wealth transfer in modern history is already underway. Advisors report retaining a spouse’s assets 75 % of the time following a client transition, but that rate falls to 56 % for next‑generation heirs and 44 % when an advisor manages assets for both a parent and a child. Forty‑nine percent of U.S. advisors say they are increasingly worried about losing assets through wealth‑transfer events. Earlier Natixis research found that 41 % of U.S. advisors view the great wealth transfer as an existential risk, and that nearly half of U.S. investors who expect to inherit wealth say they do not plan to keep their benefactor’s advisor.
The wave of advisor retirements is adding pressure. Seventy‑eight percent of U.S. respondents see advisor retirements as a significant growth opportunity, even as 65 % acknowledge that it will widen the advice gap. U.S. advisors appear more optimistic than their global peers about bridging the demographic gap: 37 % say they are struggling to attract younger advisors, compared with 51 % globally.
Seventy‑four percent of U.S. advisors say they are focused on proactively capturing next‑generation assets. Strategies include adding specialized planning services, deploying digital tools, exploring social‑media prospecting, and hiring younger advisors. More than half (52 %) believe next‑generation investors will expect access to private markets as a standard part of an advisory relationship, and 60 % anticipate that the current administration will clear a regulatory path for defined‑contribution plans to include private assets within the next 12 months.
In the near term, market volatility is the most immediate concern. Sixty‑five percent of U.S. advisors rank rising geopolitical uncertainty among their top economic worries, and 89 % expect further market turbulence because of it. The uncertainty has already altered client behavior: 64 % of advisors report that many clients want to hold more cash.
Advisors say the three biggest investment mistakes clients are making right now are: reacting emotionally to headlines (73 %), attempting to time the market (62 %), and maintaining unrealistic return expectations (53 %). Inflation risk is also a major concern. Nearly half of U.S. advisors rank inflation among their biggest worries, and 55 % say oil‑market volatility makes an interest‑rate increase more likely than a cut in the second half of 2026. About 61 % argue that the need to outpace inflation over time is one of the strongest reasons for clients to remain in equities.
Recent industry activity includes LPL’s acquisition of a $500 million Tribute Financial team from United Planners, a Fidelity veteran launching an independent firm called Osaic OSJ Innovative Financial Group, and Citizens Bank hiring a sports‑and‑entertainment trio that previously managed $800 million for Morgan Stanley. Dimple Shah, formerly with Osaic, has joined Humanity Labs to drive its AI push. The SEC’s enforcement division is reportedly probing private‑equity continuation vehicles for potential conflicts of interest, valuation, and disclosure issues.
The survey underscores that the multi‑trillion‑dollar transfer of assets between generations is no longer a future planning concern – it is an immediate business challenge. While U.S. advisors remain optimistic about sustaining growth, the convergence of AI adoption, generational wealth transfer, market volatility, and regulatory change will shape the next phase of the wealth‑management industry.
