Asset Management in 2025: The Year Visionaries Lead and Followers Falter

Analysis and themes

Volatility in 2023 Pushed a Focus on Long-Term Growth

In 2023, the 10.4% 1-year average growth rate of pension markets reflected significant recovery from previous market downturns. However, regional disparities and economic headwinds highlighted the risks of overemphasizing short-term results. Public pension funds and their asset managers increasingly leaned into long-term strategies, with 10-year compound annual growth rates (CAGR) offering a reassuring signal of market resilience.

2024 Focused on: Stability Over Speed

Marketing efforts in 2024 centred on reassuring clients of the value of long-term planning. Campaigns emphasised the consistent performance seen in 10-year CAGRs, positioning firms as stable partners amid uncertainty.

Pivot for 2025: Build Confidence Through Personalisation

• Create interactive tools that let clients see how their portfolios could perform over 5-10 years, using real growth rate data.
• Highlight success stories of pension funds that thrived through market volatility, such as those maintaining high CAGRs despite economic turbulence.

2023 highlighted striking contrasts in portfolio allocation strategies:

• Funds like GPIF (Japan) and NPS (South Korea) allocated over 50% of their portfolios domestically, prioritising stability.
• APG (Netherlands) took a bold approach, with 70% of its assets in global markets, showcasing confidence in diversification.
• Allocations to China remained minimal, averaging 1-2%, reflecting caution around geopolitical and regulatory challenges.

2024 Focused on: Educating Clients on Diversification

Marketing teams leveraged these trends to emphasize the importance of balancing domestic investments with global opportunities. Thought leadership campaigns and webinars explored how funds like APG successfully managed international risk.

Pivot for 2025: Spotlight Emerging Markets

• Develop content explaining how regions like China, despite low current allocations, represent untapped potential for 2025 and beyond.
• Host panels or podcasts discussing strategies for navigating geopolitical risks while capitalizing on emerging market growth.

Although ESG (Environmental, Social, and Governance) factors were not explicitly reflected in the 2023 data, the broader industry saw a marked increase in client demand for sustainable investment options. Funds with global exposure began incorporating ESG criteria to meet investor expectations and ensure long-term resilience.

2024 Focused on: Aligning Messaging with ESG Goals

Marketing teams incorporated ESG narratives into campaigns, emphasizing their firm’s commitment to sustainability and responsible investing. ESG case studies and impact reports became valuable tools for engaging clients.

Pivot for 2025: Make ESG Tangible

• Launch campaigns showcasing measurable ESG impacts, such as reduced carbon footprints or improved social outcomes tied to specific investments.
• Use storytelling to humanize ESG initiatives, such as profiling companies within portfolios that are driving change.

In 2023, the variability in growth rates and allocation strategies underscored the need for data-driven decision-making. Marketing teams began leveraging these insights to craft more personalized, impactful campaigns.

2024 Focused on: Insights Over Information

Campaigns transitioned from general market updates to actionable insights. For example, infographics comparing GPIF’s 50% domestic allocation with APG’s 70% global focus helped clients understand the strategic trade-offs.

Pivot for 2025: Interactive Client Engagement

• Build interactive dashboards that allow clients to compare their portfolios with leading funds in real-time.
• Provide region-specific insights, highlighting opportunities and risks based on the latest allocation and growth data.

What 2025 Could Look Like Marketers

The lessons of 2023 and 2024 lay the groundwork for more refined marketing strategies in 2025. Here’s where firms should focus their efforts:

Emphasize Expertise in Volatile Markets

• • Position the firm as a trusted guide through ongoing uncertainty, showcasing strategies that performed well in 2023 and 2024.
  • Use storytelling to humanize the complexities of pension fund management, making the firm’s expertise relatable.

Double Down on Emerging Opportunities

• • With China and other emerging markets still underrepresented in portfolios, marketing can lead the conversation about why these regions matter in 2025.
  • Host events or publish reports focusing on actionable strategies for navigating new market frontiers.

Showcase Innovation Through Technology

• • Leverage interactive tools, AI-driven insights, and data visualization to provide clients with a cutting-edge experience.
  • Create apps or platforms that allow clients to simulate portfolio performance or explore allocation trends.

Elevate ESG and Impact Investing Narratives

• • Build on the ESG momentum from 2024 by creating campaigns that highlight measurable impacts.
  • Use video content or social media to share stories of ESG success within the firm’s portfolio.

Conclusion

2025 could be a year of both challenge and opportunity. By leveraging the lessons of the past two years and pivoting strategically, marketing teams can position their firms as leaders in a rapidly changing environment. The key will be staying agile, proactive, and always focused on the evolving needs of clients.