The investment management sector is gearing up for a renewed wave of growth. Demand for wealth and investment management services is about to soar as the baby-boomer generation heads towards its sixties and seeks more efficient and innovative ways to pay for what could be thirty, forty or even fifty years of retirement.
In the US alone, an estimated $13 trillion will flow into retirement funds from other forms of wealth as people consolidate their savings, cash in their annuities, inherit wealth or sell their houses. The competition to manage such funds from fund managers and indeed other financial service providers will be intense. To attract and retain these customers, fund managers will need to be able to offer carefully tailored products that respond to clients’ changing needs as their investor profile changes. The baby boomer generation, for instance, will require tax, actuarial and other financial advice; and will want all of this at lower cost.
The pursuit of higher returns and diversified portfolios is leading to rapid growth in
alternative funds. The increasingly deregulated
hedge fund sector is attracting a broader range of investors and extending its presence beyond the US into Europe and Asia. In turn, increasing institutional investment is also helping to bring
private equity funds into the mainstream of asset management.
Real estate continues to experience an influx of capital in virtually all major, emerging and niche markets. PricewaterhouseCoopers’ ‘Emerging trends in real estate 2005’ study identified Paris, London and Helsinki as the top markets for solid risk-adjusted returns. However, pressure on yields is encouraging investors to look for higher returns in emerging markets including Eastern Europe and South Asia.
How PwC can help you
From outsourcing to merger and acquisition, product development to territory expertise that spans the globe, PricewaterhouseCoopers has the knowledge and experience to help you to plan, articulate and realise your strategy for growth.
