At a glance
- Forty-six percent of surveyed managers spend at least half their technology budget maintaining legacy systems, and 29% spend more than two-thirds that way.
- For fund selectors, the 46% figure is a due-diligence question: how much of a manager's technology budget keeps legacy systems running?
- Fee compression already constrains that spending: 22% of research respondents said it significantly constrains infrastructure investment, and a further 37% reported a moderate impact.
PwC projects profit per dollar of assets under management will fall another 9.1% by 2030, after a 19% decline since 2018, Institutional Asset Manager reported.
Forty-six percent of surveyed managers spend at least half their technology budget maintaining legacy systems, and 29% spend more than two-thirds that way. PwC says layering new cloud, AI and digital tools onto legacy systems can undermine earlier technology investment.
For fund selectors, the 46% figure is a due-diligence question: how much of a manager's technology budget keeps legacy systems running? The rest must cover the AI and private-markets expansion PwC says managers are under pressure to deliver.
Fee compression already constrains that spending: 22% of research respondents said it significantly constrains infrastructure investment, and a further 37% reported a moderate impact.
Profit per dollar of AUM: 2018 = 100
PwC projects a further 9.1% decline by 2030 on top of the 19% already lost since 2018
Show as table
| Label | Value (index, 2018 = 100) |
|---|---|
| 2018 | 100 index, 2018 = 100 |
| Now | 81 index, 2018 = 100 |
| 2030 (projected) | 73.6 index, 2018 = 100 |
Reported by the Manager Selection desk from Institutional Asset Manager and PwC, Asset Management Infrastructure: Rethinking the industry's piping. Published . Corrections