How to stay resilient and thrive under headwinds with CEO Fadi Abuali

In today's uncertain macroeconomic climate, the asset management industry faces both significant challenges and opportunities. While policy uncertainty and tariff concerns create headwinds, strategic innovation in active ETFs, ESG frameworks, and alternatives presents substantial growth potential. In this conversation with Fadi Abuali, CEO of Goldman Sachs Asset Management International, we find out why success hinges on anticipating client needs and delivering personalized solutions through technological advancement and strategic partnerships.

How do you feel about the current macroeconomic outlook?

Right now, the key point is uncertainty. Markets were optimistic about US economic resilience entering the year. The strong starting position has been challenged by policy uncertainty. Tariffs have complicated planning for businesses and raised questions on outlook for growth and inflation. All this makes the monetary policy outlook extremely uncertain. While tariffs remain in focus, there are also important aspects of President Trump’s agenda, such as tax cuts and deregulation, that could support US growth. Elsewhere, Europe’s near-term growth prospects are currently weak due to tariff headwinds. However, economic prospects are expected to improve from 2026 onwards as the region enhances its domestic defence capabilities and Germany undergoes a significant fiscal regime shift.

What are the biggest challenges to your business?

The asset management industry is evolving rapidly, and while we’ve seen strong growth across our EMEA business – an important pillar of our global strategy – we’re focused on what comes next. As one of the largest players in the industry, we must stay ahead of intensifying competition, ongoing consolidation, and the pressures of fee compression. At the same time, we see opportunity. Distributors and local managers are actively seeking strategic partners to enhance scale, broaden product capabilities, and deliver better outcomes for clients. For us, the challenge – and opportunity – is to continue deepening client relationships, understanding our clients’ needs and delivering constant value in a fast-changing environment. That means investing in innovation, anticipating risk, and raising the bar on client service, which remains our greatest priority.

How do you envision the next 10 years for your business?

The next decade will be defined by transformation, and we are excited about the role we’ll play in shaping it. As client demands become more personalized and solutions-oriented, we see strong growth opportunities across the EMEA region through deeper partnerships with distributors and institutional clients. Third-party wealth, sustainability, OCIO & strategic partnerships, insurance solutions and the delivery of alternatives capabilities is central to our strategy, along with the expansion of active ETFs and bespoke investment capabilities. At the same time, the industry is undergoing a fundamental shift driven by technology, regulatory change, and evolving investor expectations. We continue to invest to meet that demand by building scalable, innovative solutions, while staying true to our core: delivering long-term value for our clients.

What investment trends and product innovations are you interested in this year? Where do you see the opportunities?

We see 2025 as a year with significant product evolution opportunities with strong momentum across several areas. Active ETFs are a key focus, offering investors transparency and liquidity. The EMEA market saw record active ETF growth in 2024, and we believe we’re still in the early stages of what will be a long-term shift, where our active management expertise can differentiate us from competitors. ESG continues to mature, and the focus has moved from new product launches to ensuring frameworks are properly implemented, understood and adapted as regulation and expectations evolve. Investors are also turning to volatility-aware strategies, particularly in fixed income, as they seek diversification. We see greater investor demand for exposure to companies in developed markets aligned with supply chain and resource security themes. Alternatives remain in high demand, especially with ELTIF 2.0 finalized. Managers are now moving decisively into semi-liquid and retail alts, focusing on scale, pricing and competitive positioning to meet growing investor appetite.

What are you looking forward to the most at IMpower FundForum?

I’m most looking forward to connecting with clients, hearing their perspectives, understanding their evolving priorities and engaging in real dialogue. Events like this are a great opportunity to share ideas, explore new thinking, and strengthen the partnerships that drive our business forward.

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