Boutique asset managers turn to outsourcing amid regulatory pressures

Boutique asset managers are turning to outsourcing and international expansion in response to mounting regulatory and commercial pressures, a new survey has found.

The 2025 Boutique Asset Management Survey from Universal Investment Group found that more than half (52 per cent) of respondents plan to outsource at least one business function within the next 12-24 months, while almost half (49 per cent) are looking to expand beyond their home market to pursue future growth.

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Respondents said the main challenges driving these changes were regulatory requirements, named by 71 per cent, followed by increasing competition and margin pressure (41 per cent).

“The challenges asset managers face have intensified in the past 12 months,” said Marcus Kuntz, group head of sales and fund distribution at Universal Investment.

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“As commercial pressures  have increased and the direction of markets has become less certain, many organisations are seeking to streamline operations through outsourcing non-core functions, while others are taking bold steps to pursue growth in new and existing markets.

“These dual strategies give boutique managers the best of both worlds, allowing them to focus on their core competencies, reduce their cost base, and deliver investment performance for clients.”

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