We begin 2026 with a clear narrative: governments are spending more; companies are investing heavily in new technology, and those forces are reshaping where growth and returns will come from. This combination creates a broadly favourable backdrop for markets, but it doesn't deliver a single, uniform outcome. Instead, it sets the stage for concentrated opportunities, where select companies and sectors are likely to outperform.
Wealth managers face the challenge of turning global trends into practical actions by building portfolios, having meaningful client conversations, meeting price and value Consumer Duty requirements and creating operating models that work in a competitive UK market shaped by consolidation, private equity and product innovation. To aid with this, this article highlights six trends that wealth managers should consider.
01
Fiscal stimulus and accelerating AI investment are expected to lift global growth and corporate profits. However, the gains are unlikely to be evenly distributed. A relatively small group of high-quality companies including major hyperscalers such as Amazon, Microsoft and Alphabet i.e. those with scalable business models and clear monetisation strategies are expected to capture a disproportionate share of earnings[1]. For wealth managers, this means moving beyond broad exposure and focusing on selective ownership of durable earnings streams. But concentration also raises execution risk. When a handful of names drive returns, how you buy, hold and sell them becomes crucial. Investors should treat concentration as just another risk budget decision and consider whether other alternatives such as factor tilts, that avoid unintended crowding, will play larger parts in portfolio construction.
02
Industry trends will increasingly shape the operating environment for UK wealth managers. The FCA's Consumer Duty now requires firms to evidence clear price‑and‑value outcomes, apply proportional oversight and ensure accountability across the distribution chain. The 2025 update formalises board‑level reporting and removes the "Duty Champion" role, signalling that implementation should now be fully embedded.[2]
The FCA's consolidator review will also reshape business models, especially for private equity (PE) backed firms. Higher regulatory‑capital expectations, institutional‑grade standards[3] and rising cost‑to‑serve driven by data, MI, outcomes testing, board reporting and deeper integration will likely increase operating costs. PE‑owned firms also face tighter limits on extracting cash from regulated entities.
CEOs should plan for structurally higher compliance spend and more conservative capital adequacy policies. Clear articulation of price and value will be essential for client retention and regulatory resilience. In this environment, economic value creation becomes the core differentiator: firms must show they can deliver sustainable client outcomes while absorbing greater regulatory and operational demands to deliver investors and shareholders the returns they expect.
03
Private markets and evergreen funds are moving deeper into wealth channels. Early adoption is already visible in the UK market, with more firms exploring evergreen structures. For clients, these vehicles, appropriately sized from an asset allocation perspective and structured appropriately, offer long‑term access to private markets without forced exits, creating new opportunities for diversification. WTW is considering how private‑market routes with strict liquidity and governance standards can play a part in wealth portfolios, while also working with advisers to assess how (and in what circumstances) integrating private markets evergreen strategies can responsibly contribute to improving risk-adjusted returns of portfolios.
04
Innovation in product design is another theme for 2026. Active ETFs are set to play a bigger role in UK wealth portfolios, notwithstanding some of the platforms' operational execution capabilities, combining the transparency and liquidity of ETFs with active management. They align well with consumer duty requirements by offering efficiency and clarity. Ensuring active ETFs are positioned as client‑friendly vehicles that enhance portfolio construction will be key. We have seen growth in these types of strategies across Europe and are having several early conversations with our top-rated asset managers about their plans for developing more in the active ETF space.
2025 also saw the launch of the UK's first fully tokenised, FCA-authorised UCITS fund, a strategic bond feeder fund on a public blockchain (Ethereum), facilitated by Archax[4]. This marked the first-ever tokenised regulated fund issuance in the UK. We are excited to see how this innovation continues and what that will mean for portfolio construction in the UK wealth market, potentially enabling access to different thematic exposures for portfolios.
05
Investment trusts are an example of the challenges faced by incumbent product structures, as innovation trends accelerate. However, this is a market segment which has had to evolve over many decades to remain relevant. We should know, the WTW managed Alliance Witan PLC has been responding to similar threats since 1888. In recent years, regulatory uncertainty has cast a cloud over the investment trust sector, while the FCA consulted on the Consumer Composite Investments (CCI). This is now resolved, and a pragmatic solution re-establishes investment trusts as a highly competitive investment vehicle to be held in multi-asset or fund-of-fund structures. The FCA's forthcoming MiFID review may result in even broader impact. Investment trusts also occupy some of the territory which evergreen private market funds and active ETFs are looking to conquer. However, far from being a winner takes all scenario, we believe there is plenty of room for a range of collective vehicles to prosper, provided they are well-managed, appropriately structured, relevant to investors and keenly priced. Of course, the ultimate beneficiary of any well-considered evolution will be the end investor, whether intermediated or otherwise.
06
Demographics are shifting. The average age of UK wealth clients means many are entering decumulation, the phase of drawing down savings to provide income. This is a short‑term but urgent trend. The ONS projects the number of people aged 85+ to nearly double from 1.7m (2022) to 3.3m by 2047[5], increasing longevity‑linked demands on care, income planning and liquidity.
There is a need for the UK Wealth market to focus on building out decumulation default frameworks (for example blends of drawdown and annuity) and embed spending tools that map to Retirement Living Standards, which are benchmarks published by Pensions UK (formally PLSA) in the UK[6]. We also believe there is a need to develop support and advice around liquidity planning and advice to balance behavioural bias during market drawdowns which are different from the wealth accumulation phase.
In addition, we note the longer-term theme of the great intergenerational wealth transfer, which although represents a longer‑term issue, should be being considered as part of the overall decumulation strategy for individuals.
07
At WTW we see a wider story than just US exceptionalism. While we continue to maintain conviction in the strength of the US economy into 2026, fiscal stimulus in Europe and Japan, together with global investment in AI, is creating opportunities beyond American equities. For wealth managers, this means looking across regions and sectors, not just one market. A continuing debate for the year will be whether AI is in a bubble. We will examine this question in detail in our annual 2026 Global Investment Outlook alongside other themes such as the trajectory of global interest rates and the implications of government spending across major economies.
Success in 2026 will require disciplined selection, careful execution and client‑focused innovation. WTW is not only analysing the trends shaping the year, but we're also actively delivering solutions that strive to help UK wealth managers navigate regulation, capture concentrated growth, integrate private markets and meet the changing needs of clients in decumulation. We're committed to providing advice, frameworks, insights and solutions to support firms to thrive in this environment with the ultimate focus of creating lasting value for savers.
To help wealth managers keep up to date with the latest trends and insights, throughout 2026, we will be publishing regular relevant content and hosting roundtable events in collaboration with the Thinking Ahead Institute. Sign up for our wealth newsletter and be the first to hear about these updates:
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