As 2025 draws to a close and we reflect on the memorable milestones of the year, there has been one thing made abundantly clear: the investment operations landscape is fundamentally changing. Across markets and asset classes, the industry is being reshaped by converging forces. Public and private assets are increasingly held in the same portfolios, mutual funds and ETFs are beginning to share operating models, and both retail and institutional investors now demand the same levels of transparency, speed, and control.
Meanwhile, regulatory pressure to broader global expectations around operational resilience, continues to raise the bar for availability, accuracy, and governance across the investment lifecycle. In parallel, the limitations of aging infrastructure became particularly visible in 2025 as firms wrestled with operational continuity, NAV production, and cybersecurity risks. Systems that once supported core accounting functions now struggled to keep pace with the demands of a real-time, always-on investment ecosystem.
Needless to say, 2025 has been a year of momentum, pushing the industry to rethink how it operates at every level. But before the confetti falls and the fireworks erupt, we’re reflecting on the industry’s highs and lows, while casting our gaze toward 2026, a year that’s poised to be full of both challenges and breakthroughs.
For much of the last decade, modernization efforts focused on patching legacy platforms. In 2025, it became increasingly clear that technology swaps and inconsistent upgrades alone do not deliver meaningful transformation. Replicating old workflows on new infrastructure often preserved inefficiencies, failed to address operational risks, and limited the ability to scale or innovate.
The problem is more than just cost or complexity. Legacy systems, with slow patch cycles and brittle integrations, are highly vulnerable to cyber threats. When disruptions occur, whether due to an attack, system failure, or data inconsistency, the impact ripples throughout the business, affecting NAV calculations, investor reporting, trading, and regulatory compliance. As a result, many firms discovered that meaningful transformation requires an approach that goes beyond technology to include people, processes, and governance.
In 2025, the most successful initiatives treated transformation as a full business exercise, not merely a technology upgrade. Firms that examined their operating model, team structure, and workflow design alongside software changes were able to reduce risk and accelerate innovation.
Cultural change also remained at center stage as a critical factor to success. The true spirit of transformation is about empowering teams to embrace new tools rather than to see them as a hurdle. Firms that invested in upskilling staff and fostering a mindset of adaptability and continuous improvement were better positioned to capture the benefits of automation, AI, and cloud-based solutions.
Leadership also played a critical role in these endeavors. Executives and operations heads who provided clear direction and held teams accountable helped ensure that transformation was executed consistently and effectively. This alignment reinforced a broader insight from 2025 that meaningful transformation does not happen in isolation. It happens when different perspectives come together to drive towards the same goal.
This year reinforced the fundamental truth that being in the cloud is no longer optional for firms seeking resilience, scalability, and operational efficiency. The industry increasingly recognized that true cloud-native architecture is distinctly more powerful than legacy systems migrated to the cloud. Lift-and-shift approaches, while superficially modern, often perpetuate underlying vulnerabilities and fail to unlock the full potential of cloud platforms.
Cloud-native solutions provide continuous updates, automated patching, and built-in disaster recovery, dramatically enhancing operational resilience. True cloud providers invest billions annually in security and monitoring, offering a level of defense that is difficult to replicate in on-premises environments. Furthermore, cloud-native platforms integrate modern identity and access management frameworks, supporting secure hybrid and remote work environments. In practice, this architecture also accelerates onboarding and scaling, allowing firms to implement new clients or products quickly without sacrificing operational rigor. When paired with strong governance and a culture of adaptability, cloud-native systems become a strategic enabler, not merely a technical upgrade.
Perhaps one of the most notable shifts in 2025 was the elevation of operational resilience to the boardroom. NAV production, once considered a back-office function, is now a strategic imperative. Boards are increasingly asking hard questions about contingency planning, cyber preparedness, and the organization’s ability to operate under stress. Traditional business continuity plans, designed for hardware or software failures, are no longer sufficient. Boards are demanding automated, contingent NAV capabilities, tested against realistic cyber and operational scenarios. Firms that took this step were able to operate with confidence and maintain transparency even under adverse conditions.
Another important theme of 2025 was convergence across products and operations. ETF share classes, hybrid fund models, and multi-asset portfolios increasingly require unified systems and real-time accounting foundations. The days of fragmented systems calculating the same data in multiple places are ending. Firms now recognize that the future of investment operations depends on integrated platforms capable of supporting multiple asset classes and investor types. This convergence is intertwined with the other trends discussed like cloud-native architecture and holistic transformation. Together, they create the conditions for agility, transparency, and resilience in an increasingly complex environment.
As we look ahead to 2026, many of these trends won’t be slowing down anytime soon. In fact, they are accelerating. Firms will need to balance ambition with pragmatism, leveraging technology, data, and talent to not only stay ahead but to redefine what is possible in investment operations. From additional AI-driven advancements to multi-asset accounting platforms, the coming year promises opportunities for those ready to act decisively. Below, we highlight the key trends, opportunities, and strategic priorities that will shape the year ahead.
Ultimately, the lessons of 2025 are unmistakable and the teams that embrace platforms designed for resilience and continuous change will define the next era of investment operations. At FundGuard, our team is energized and ready to tackle the challenges and opportunities ahead, bringing clarity, conviction, and collaboration to every new industry advancement. We believe that those who approach the year with purpose and innovation will not only navigate 2026 successfully but set the pace for operational excellence well into the future.
Get in touch to discuss your 2026 plans and see FundGuard in action.
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