Asset management product groups had a challenging 2025. While product teams were already busy adapting to tax customization, active exchange-traded funds (ETFs), and building greater exposure to private markets, a transformed political and regulatory environment accelerated the timeline for dual-share-class product to reach market, spiked interest in distributing private market allocations via defined contribution (DC) plans, and increased attention to tokenization. This dynamic has led to significant industry changes—and an exceptional volume of work for product development groups, according to The Cerulli Report—U.S. Product Development 2025.

As the pace of change intensifies and firms focus on a range of initiatives, product groups face strategic decisions regarding resource allocation and prioritization. “The substantial volume of competing demands across products and asset classes, as well as distribution challenges, will continue into 2026 and beyond,” notes Daniil Shapiro, director.

The research homes in on active and dual-share-class ETFs, building private markets exposures, and tokenization as potential areas of focus. According to Cerulli, nearly all asset managers view the ETF structure as a large opportunity (96%) as the industry continues to focus on developing and distributing active ETF product. “Asset managers have several avenues for accessing the active ETF opportunity, including launching new active ETFs (either replicated, tweaked, or brand-new strategies) and conversions from mutual funds,” says Shapiro. According to the research, while 74% of firms that offered or were evaluating offering ETFs in 2025 were considering use of the ETF share class, few are planning to launch entire suites of such product.

Just as important as the push into ETFs is the push toward retail access to growing private markets. Asset managers are investing both capital and effort into the initiative, but Cerulli notes that tremendous market competition is likely to make distribution increasingly challenging. Overall, 65% of managers that offer interval fund product perceive a large distribution opportunity for the structure, and 87% plan to develop brand new strategies.

Meanwhile, the private markets in DC plans opportunity is gathering meaningful momentum, which will take sustained effort to reach scale for product manufacturers. Use of the collective investment trust (CIT) structure and its rails has emerged as the go-to solution for including private market strategies within target-date funds. “Managers should evaluate partnerships and support efforts, with the understanding that laying groundwork now will help access a critical opportunity in future years,” comments Shapiro.

Last, while tokenization is likely to receive tremendous attention in coming years, it will be a long-term initiative beyond the most obvious use cases that result in efficiency improvements and cost savings. “The existing tokenization opportunity is most heavily focused on cryptocurrency ETFs and money market products, but will shift to real-world assets over time,” says Shapiro. “Pursuing partnerships with blockchain-focused firms could benefit those lacking in-house expertise. Beyond the largest managers and custodians, taking a wait-and-see approach to tokenization may also work well,” he concludes.