Funds Congress Highlights

Panel: The AI Moment: Leadership, Execution, and the Transformation
Race

• Moderator: Katie Martin, Columnist and Member of the FT’s Editorial Board, Financial Times
• Gus Black: Partner, Financial Services and Investment Manager, Dechert
• John Donohoe, Founder & Group CEO, Carne Group
• Nils Jean-Mairet, CFO Euroclear
• Steven Libby, EMEA Asset & Wealth Management Leader, PwC Luxembourg

Funds Congress 2026, hosted by Carne Group, Dechert, Euroclear, and PwC, convened industry leaders to discuss the evolving asset management
landscape amidst heightened geopolitical uncertainty. The opening, interactive session drew on audience insights to address regulatory pressures, technological transformation, market positioning, and the imperative to balance cost management with revenue growth.

The conference opened against a backdrop of unprecedented uncertainty, with attendees gathering to navigate geopolitical tensions, questions about central bank independence, and shifting transatlantic relationships. Despite surface-level anxiety, survey data from 200 asset managers and 200 institutional investors revealed significantly greater confidence than in previous years, with 89 per cent of investors planning to increase risk exposure in 2026 and over 90 per cent of managers anticipating higher flows.

Geographical diversification trends: A pronounced trend emerged whereby
European investors are moderating US exposure whilst American asset
managers increasingly seek European capital. Nearly 98 per cent of managers reported exploring new markets both geographically and across asset classes.

Governance as investor gatekeeper: Growth in semi-liquid private market
funds and active ETFs has been accompanied by intensified investor scrutiny of governance frameworks. Over 90 per cent of investors reported rejecting potential investments due to insufficient governance standards.
Despite deregulatory signals from the United States, European regulatory
momentum continues unabated. The resulting cost pressures are prompting
many firms to seek external support for operational complexity.

The profitability challenge: The structural profitability challenge facing asset managers was examined, with private markets projected to generate the majority of revenues by 2030. The industry faces a persistent cost-income ratio of approximately 68 per cent, and meaningful cost reduction requires substantial upfront investment in data infrastructure. The trend towards outsourcing non-core functions is accelerating.

AI – beyond the hype: AI emerged as a dominant theme, with 44 per cent of attendees viewing it as the greatest transformation opportunity. Examples were cited of AI completing 300 hours of legal work in three minutes, yet consensus expectations centred on 10 to 25 per cent cost savings. The argument was advanced that AI’s primary value lies in accelerating time-to-market rather than mere expense reduction, with applications already in production including predictive analytics for settlement failure prevention.

Data management imperative: Data management emerged as the leading
fund platform challenge, framed as a critical enabler of both AI-driven
efficiency and safer market operations.