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Is private equity the next must-have investment, will active ETFs gain traction in South Africa and how will tokenisation change how assets are owned and traded? These are some of the major trends expected to reshape the wealth management industry in the next 12 months. Advisers who understand and respond to these shifts will be better positioned to ensure sustainability and growth in 2026.
Wealth management is a growing industry
Globally, there are around $147 trillion in assets under management (AUM), including R6.8 trillion in South Africa. AUM is growing organically, even in a year with impressive returns. Adding to growth opportunities is the start of large intergenerational wealth transfers, with older clients leaving substantial assets to younger generations. There are no local estimates for how much could change hands, but in Europe €3.5 trillion has been suggested and in the US $124 trillion. Investors with these millions of rands are looking for advice.
Key takeaway for advisers: wealth management is a growth industry offering opportunities for advisers to expand their practices.
More investors are looking to private markets for returns
If you thought the industry growth numbers were impressive, consider the growth in private equity markets. Globally, alternative funds could grow by more than 50% by 2030.
- JP Morgan Asset Management says that their Family Office saw a steady growth in allocations to private investments, “with twice as many families increasing their exposure than reducing it”.
- In SA, the DEInvest Annual Survey 2025 found that private investments are the 5th most popular investment strategy among asset managers.
Driving this popularity are shrinking listed markets, the search for uncorrelated assets to support diversification and the potential for higher returns.
Emerging-market private equity investments outperformed public-market benchmarks by an average of 16% over the period 1990–2023.
Key takeaway for advisers: upskill in private investments with help from asset managers. Make sure you and your clients know the fee structures and costs, risks, return horizons and potential rewards and how they differ from listed equity.
Active ETFs are playing a more prominent role
Globally, active ETFs are receiving greater shares of inflows and rising in number as clients look for low fee active asset management.
“2025 marks the coming of age for active ETFs,” according to McKinsey, with over 1 400 funds launched in the past five years. Although they represent just 7% of ETF AUM, they received 37% of inflows.
The DEInvest Annual Survey 2025 found that although they are still in their infancy in South Africa, “their emergence marks a significant shift…and South Africa’s first wave signals that similar trends may take hold locally.”
Key takeaway for advisers: quantify low cost. You can add value for your clients by showing comparisons of costs, underlying investments, strategies and potential returns between active-traditional and active-ETF funds.
Tokenisation could change how assets are owned
Tokenisation uses blockchain to represent real-world assets digitally, allowing fractional ownership and instant, secure transfer. Just as your clients can own a piece of Bitcoin, they can also own fractional interests in gold, high-priced equity and other real-world assets.
Tokenisation is the process of using a programmable ledger to digitally represent the ownership of an asset – financial or otherwise – in a transferable format,” according to the World Economic Forum. A token represents something of value – from a commodity such as gold to a share.
“Through tokenisation, almost any real-world asset – a company, a fund, even a piece of art or property – can be represented digitally and traded securely and instantaneously,” say Ninety One.
Key takeaway for advisers: decide how you will adapt to changes in asset classes and ownership. If you are planning to offer advice in this area, obtain the required accreditation when available such as becoming a CASP.
AI reshapes the investment industry
“Artificial Intelligence will not replace humans, but those who use AI will replace those who don’t,” said Ginni Rometty, former CEO of IBM.
AI has moved beyond the novelty stage and is now a must-have. Investment managers are using AI to assist with operations, research and portfolio construction. AI improves efficiencies but it has limits and risks and requires human oversight.
As a result, AI skills are increasingly in demand, along with social science skills such as critical thinking and understanding of human behaviour. These skills will help you use AI efficiently, safely and for the benefit of clients.
Key takeaway for advisers: adopt AI or risk falling behind. Find an AI expert and work with them to learn how to use AI in your business such as client communication and portfolio management.
As much as you need AI skills, you still need traditional financial adviser skills such as empathy and critical listening. The future is not only AI, and the best way to benefit from AI is to use your traditional skills together with your new AI skills.
The fundamentals haven’t changed
“Even as new assets take hold and opportunities expand over the next 30 years, we believe the timeless principles of investing: clear goals, a strong process, discipline, diversification and risk management will still endure,” say JP Morgan Asset Management.
It’s the same for advisers. Your proposition endures. Your process, understanding your clients, and long-term guidance remain essential.
No matter how much changes in 2026, the adviser–client relationship remains at the centre of investing and financial planning.