Authored by Sarah Walter, Head of Asset and Wealth Management Relationships at Nicsa
Private markets continue to play an increasingly central role in asset and wealth management strategies, driven by investor demand for differentiated return streams, income, and diversification. Nicsa’s Private Markets Committee convenes senior leaders from across asset management, wealth platforms, distribution, technology, and professional services to examine how firms are navigating this evolving landscape.
Formerly known as the Alternative Investments Committee, the group formally updated its name in 2025, with 95% of members voting in favor of the change. The new name, private markets, is more aligned with current industry terminology and better reflects the committee’s focus on private equity, private credit, real assets, and related structures.
Over the course of the past year, committee discussions consistently centered on practical implementation challenges rather than theoretical opportunity. Here are the key themes that guided the committee’s work in 2025 and will inform its priorities in 2026.
Expanding Access—Without Ignoring Constraints
Private market investments are reaching a broader audience, particularly through interval funds, tender offer funds, non-traded BDCs, non-traded REITs, and emerging use cases within defined contribution plans. Committee discussions highlighted growing interest in these structures, alongside sober recognition of the trade-offs they introduce.
Members spent considerable time examining how liquidity provisions, redemption mechanics, and portfolio construction considerations affect both sponsors and end investors. While access is expanding, firms remain highly disciplined in balancing product demand with operational feasibility and investor experience.
Liquidity, Structure, and Portfolio Fit
Liquidity management emerged as one of the committee’s most consistent topics. Discussions explored how intermittent liquidity vehicles can be incorporated into model portfolios, how rebalancing and prorating challenges are addressed, and where friction may still exist across platforms and custodians.
Committee members also examined how different fund structures—registered and unregistered—shape distribution strategy, compliance obligations, and investor suitability. Rather than seeking one-size-fits-all solutions, conversations emphasized the importance of aligning structure, liquidity, and use case.
Regulatory Guardrails Continue to Shape Design
Regulatory considerations remained front and center, particularly as firms evaluate private market exposure within registered vehicles and retirement plans. Committee discussions revisited ’40 Act limitations, distinctions between registered and private fund structures, and evolving regulatory expectations around illiquidity, disclosure, and investor protection.
Members noted that regulatory clarity—or lack thereof—continues to influence product design decisions, especially for firms seeking to scale private market offerings responsibly.
Technology as Infrastructure, Not Hype
Technology discussions throughout the year focused on solving friction, not chasing novelty. Committee members explored how platforms are streamlining onboarding, subscription processing, reporting, and data management for private market investments.
Emerging technologies such as tokenization and distributed ledger solutions were pragmatically discussed with current priorities lying in standardization, operational efficiency, and compliance-ready workflows. Platforms that reduce complexity—rather than introduce it—were viewed as critical enablers of growth.
Education as a Growth Enabler
Across meetings, committee members consistently pointed to education as a gating factor for broader adoption. Advisors and investors continue to grapple with complex structures, terminology, liquidity features, and tax considerations.
Discussions highlighted the need for clearer, compliance-approved educational materials and practical resources to support advisors, operations teams, and compliance professionals alike. As private markets become more accessible, the committee underscored that education must keep pace.
Looking Ahead
As private markets continue to evolve, the committee expects many of these themes to remain top of mind in 2026—particularly liquidity management, regulatory alignment, and scalable distribution models. The committee’s shift from “alternatives” to “private markets” reflects not just a naming update, but a broader maturation of the category itself.
Nicsa thanks the members of the Private Markets Committee and its guest speakers for their thoughtful contributions throughout the year. Their insights continue to inform meaningful dialogue across the asset and wealth management community.
To learn more about Nicsa’s committees or to get involved, visit nicsa.org.
Observations contained in this work do not necessarily reflect the views of Nicsa or any member organization. Nothing herein is intended to be or should be construed as legal advice. Firms should consult their own counsel regarding legal or regulatory matters.
Nicsa's Innovation & Technology Strategy Committee, comprising executives in the asset and wealth management community, presents the following insights around AI implementation:
Artificial Intelligence is no longer a side experiment in financial services. In asset and wealth management, it is quickly becoming strategic infrastructure. Firms are using AI to streamline client reporting, automate compliance monitoring, analyze risk, and enhance customer service.
But this transformation comes with real risk. AI in finance is not like AI in consumer apps. A mistake in an investment memo, a missed clause in a regulatory filing, or a fabricated answer from a chatbot isn’t just an inconvenience; it’s a compliance breach, a reputational hit, or at worst, a regulatory fine.
Imagine your AI agent writes a perfect-sounding portfolio memo… except it forgets one critical disclosure line. That single omission could trigger an auditor’s call, an investor’s concern, and a regulator’s letter, all before lunch.
That’s why AI governance is now mission-critical. It’s the difference between firms that responsibly unlock AI’s value and those that stumble under regulatory pressure or client mistrust.
The asset and wealth management industry has always been built on trust, fiduciary duty, and regulatory accountability. Clients expect accuracy.
Regulators demand compliance. Boards require transparency.
AI introduces a new variable: models that can be powerful but opaque. Without strong governance, firms risk deploying systems they can’t fully explain or defend. And in finance, if you can’t explain a decision to a client, an auditor, or a regulator, you can’t justify it.
Good governance provides the structure to ensure AI is not just innovative, but also auditable, ethical, and aligned with business goals.
Strong governance doesn’t start with technology. It starts with people and culture.
The NICSA Innovation & Technology Strategy Committee identifies several practices that apply equally to internally built AI and third-party vendor systems:
And critically, firms don’t have to start from scratch. There are already key frameworks and standards that can guide AI governance:
| Category | Key Frameworks | Region / Scope |
| Regulatory | EU AI Act, NIST AI RMF, AI Bill of Rights (USA) | EU, USA, Global |
| Governance | ISO/IEC 42001, OECD Principles, IEEE 7000 | Global |
| Technical | MLOps, Responsible AI (RAI) frameworks, Model Cards | Global / Enterprise |
| Sector-Specific | FDA GMLP, MAS FEAT, Basel AI Guidance | Industry-Specific |
| Vendor Management | SIG AI, NIST AI RMF, SOC 2 + AI | Third-Party / Vendor |
Once governance frameworks are in place, firms must turn to execution. That means aligning every AI initiative with clear business outcomes. Projects should be tied to measurable KPIs, not vague promises of efficiency.
Implementation also requires cross-functional teams. Successful AI projects in finance aren’t built by data scientists alone. They are co-developed by compliance officers, legal teams, domain experts, and technologists, often with vendor partners at the table.
Finally, governance doesn’t end at deployment. Post-deployment monitoring for bias, performance drift, or compliance gaps is essential. In financial services, this is where firms earn or lose trust.
The opportunities and the governance challenges are not hypothetical. NICSA highlights several use cases already reshaping asset and wealth management:
Consider one mid-size asset manager that rolled out a
compliance-monitoring chatbot to flag new rule changes. It worked beautifully… until the model quietly started missing updates because its data source wasn’t refreshed. The result? A missed disclosure, a regulatory query, and a costly scramble to restore confidence.
Each example shows the same pattern: AI adds value only when paired with governance.
AI governance itself is evolving. Three trends stand out:
AI has enormous potential to transform asset and wealth management. But innovation without governance is risky. Compliance failures, reputational damage, and client mistrust are too costly in this industry.
By following best practices, building literacy, curating tools, enforcing lifecycle oversight, and ensuring explainability, firms can embrace AI with confidence.
The future of AI in finance will belong to firms that make governance the foundation, not an afterthought.
To gain more insights around trends impacting the global asset and wealth management industry, join Nicsa’s community of more than 30 committees. We thank our Innovation & Technology Strategy Committee for shedding light on this and other important topics.
Observations contained in this work do not necessarily reflect the views of Nicsa or any member organization. Nothing herein is intended to be or should be construed as legal advice. Contact your own counsel in order to obtain advice regarding legal or regulatory matters.
Get ready to look ahead.
Nicsa has invited Zack Kass— Global AI Advisor and Former Head of Go-To-Market at OpenAI—to deliver the keynote address at the 2025 Asset & Wealth Management Summit, taking place November 11–12, with the keynote on Wednesday, November 12.
As the asset and wealth management industry continues to navigate the transformative power of artificial intelligence, Zack brings a uniquely informed and practical perspective on what’s next—and how firms can stay ahead.
At OpenAI, Zack led the teams responsible for sales, partnerships, and customer success, turning the company’s cutting-edge research into real-world business solutions. He has personally advised executives across dozens of industries on deploying AI at scale.
As an executive business advisor, Zack now works with Fortune 1,000 boardrooms and leadership teams—including Coca-Cola, Morgan Stanley, and Amgen—to help leaders navigate the rapidly evolving AI landscape.
Recognized as one of the foremost thinkers in applied AI, Zack’s insights have been featured in Fortune, Newsweek, Entrepreneur, AdAge, and Business Insider. His keynote at the Summit will explore the human and strategic dimensions of AI adoption, offering attendees a roadmap for leveraging innovation while strengthening organizational resilience.
Join us at Nicsa’s Asset & Wealth Management Summit, where industry leaders will come together to explore the intersection of AI innovation and human capital—and gain firsthand insight from one of AI’s most influential voices.
Nicsa’s Asset & Wealth Management Summit
November 11–12, 2025
The Westin Boston Seaport District
Register today.
The International Committee hosted a discussion on developments in the China investment and funds industry. The Committee invited Dean Chisholm, who lead Invesco business in China & its wider region for many years, and Qing Ni, PwC’s Head of Asset & Wealth Management in Chinese Mainland, based in Beijing. The Committee also invited participation by representatives from Franklin Templeton with experience working in China through joint venture investment entities.
The asset and wealth management (AWM) industry in China continues to evolve, underpinned by regulatory reform, growing investor demand and availability of new collective investment products and services.
Qing Ni went through PwC’s latest July 2025 industry update highlights, describing both the growth trajectory of the market and the various challenges reshaping the industry. Dean Chisholm then described Invesco’s and his own views on development of the investment market in China, including his own experience in working in the market over multiple decades.
Strong AuM Growth Amid Structural Shifts
According to PwC’s summary data, overall assets under management in Chinese Mainland investment products reached RMB 136.1 trillion in 2024, reflecting a steady upward trend. During this period, regulatory changes aimed at harmonizing local regulations with global standards and improving efficiency of distribution were also put in place by securities industry regulators. While bank wealth management products remain a growing segment of the investment market, traditional wealth products remain a relatively small component of the retail market. Insurance asset management products and public funds have emerged as strong growth drivers, registering compound annual growth rates (CAGR) of 22.7% and 16.7% respectively between 2018–2024.
By contrast, segments such as trust fund plans and segregated managed accounts have contracted, signaling a long-term shift towards regulated, transparent vehicles.
Takeaway: Growth is now concentrated in standardized and regulated products, aligning with China’s broader financial reform agenda.
ETFs and Bond Funds Lead Product Innovation
The PwC summary, along with the views of participants, notes an increasing market interest in ETFs and bond products. Between 2023 and 2024:
This product mix reflects investors’ preference for cost-effective, transparent, and liquid vehicles amid a volatile market. The trend is reinforced by declining management fee rates across nearly all public fund categories—stock funds, hybrid funds, and ETFs all saw fee compression of 5–14% between 2022–2024.
Takeaway: ETFs and bond funds are at the forefront of growth, while fees continue to face downward pressure.
Policy Spotlight: Action Plan for Development of Public Funds
A major regulatory milestone arrived on May 7, 2025, with the issuance of the Action Plan for Promoting the High-Quality Development of Public Funds. Key provisions include:
Takeaway: Regulators are actively steering the industry toward long-termism, transparency, and greater equity allocation, while seeking to balance investor protection with product innovation.
Bottom Line
The Chinese investment industry remains comparatively unique in its stage of development relative to its overall size, but is gradually entering a new stage of scale, sophistication, and regulatory maturity. Strong AUM growth, the rise of ETFs and bond funds, and declining fees highlight an industry adapting to investor demand for efficiency and transparency. Meanwhile, the 2025 Action Plan underscores policymakers’ determination to guide the sector toward high-quality, long-term, and equity-driven development.
The China domestic market remains limited in its distribution channels, with banks continuing to hold an out-sized role and undue influence on product rollouts and investors’ product retention rates. This will likely evolve slowly toward a more Western style of distribution choices, including introduction of RIA’s and true wealth management capabilities.
As the market grows more competitive, asset managers will need to innovate in product design, embrace regulatory shifts, and deliver lasting value to investors. The message is clear: China’s industry is not just expanding—it is transforming for the future.
To gain more insights around trends impacting the global asset and wealth management industry, join Nicsa’s community of more than 30 committees. We thank our International Committee, PwC, Dean Chisholm and Franklin Templeton for shedding light on an important and growing market.
Observations contained in this work do not necessarily reflect the views of Nicsa or any member organization. Nothing herein is intended to be or should be construed as legal advice. Contact your own counsel in order to obtain advice regarding legal or regulatory matters.
The ESG investing landscape is evolving fast. Nicsa’s International Committee, comprising executives in the international asset and wealth management community, recently invited Federated Hermes’ Head of Product Strategy & Development, Stuart Ballard to present findings around ESG & Sustainability investments.
Recent trends reveal a nuanced picture: while demand for sustainability-aligned products remains significant, the market is undergoing major shifts driven by fund flows, regulation, and investor sentiment. Fund flow data highlights both resilience and headwinds, while upcoming regulation could reshape the market entirely.
Drawing on the latest data presented by Federated Hermes (June 2025), here are the key developments shaping ESG and sustainability product trends.
Article 8 Gains, Article 9 Stumbles
Combined assets in Article 8 and Article 9 funds reached nearly 60% of the European fund market by the end of 2024. However, investor appetite has diverged sharply:
Takeaway: investors are still allocating to sustainable strategies, but they are gravitating toward Article 8 funds, which are seen as more flexible and less constrained by regulatory definitions.
Regional and Domicile Shifts
The regional picture underscores how regulation and investor confidence shape flows:
Asset Class Spotlight: Fixed Income
A bright spot in recent data is fixed income ESG funds, which have consistently attracted inflows. Investors are favoring sustainable bonds amid a stabilizing macroeconomic backdrop:
By contrast, equity ESG funds, while positive in 2023–24, have seen outflows in 2025 year-to-date. Mixed-asset ESG funds have also struggled, echoing challenges across the broader market
Product Development Pressures
SFDR 2.0 on the Horizon
The Sustainable Finance Disclosure Regulation (SFDR), introduced in 2021, has been pivotal in shaping flows and fund classifications. But unintended consequences — especially the market’s use of Articles 6, 8, and 9 as “labels” — have fueled confusion and criticism.
The European Commission is now preparing SFDR 2.0, with reforms expected to reshape the framework:
Bottom Line
The ESG product landscape is at a crossroads. While Article 8 funds continue to attract strong inflows and fixed income ESG strategies show resilience, challenges for Article 9 funds and shifting investor sentiment highlight the sector’s growing pains.
With SFDR reform on the horizon, asset managers will need to adapt product design, branding, and engagement strategies to align with evolving standards while continuing to meet investor demand for authentic, impact-driven sustainability solutions.
The message is clear: ESG investing is not fading, but it is evolving — and agility will be the defining advantage.
To gain more insights around trends impacting the global asset and wealth management industry, join Nicsa’s community of more than 30 committees. We thank our International Committee and Federated Hermes for shedding light on this and other important topics.
Observations contained in this work do not necessarily reflect the views of Nicsa or any member organization. Nothing herein is intended to be or should be construed as legal advice. Contact your own counsel in order to obtain advice regarding legal or regulatory matters.
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