Asset Management 2020: A Brave New World

The PwC report predicts that global assets under management (AuM) will rise to around $101.7 trillion by 2020, from a 2012 total of $63.9 trillion. This represents a compound annual growth rate (CAGR) of nearly 6%.

The report also finds that assets under management in the SAAAME (South America, Asia, Africa, Middle East) economies are set to grow faster than in the developed world in the years leading up to 2020, creating new pools of assets that can potentially be tapped by the asset management (AM) industry. However, the majority of assets will still be concentrated in the US and Europe.

Assets under management (AuM) in the Asia-Pacific region will rise to $16.2 trillion by 2020, from a 2012 total of $7.7 trillion. This represents a CAGR of 9.8%.
Global AuM growth will be driven by pension funds, high-net-worth individuals (HNWIs) and sovereign wealth funds. At the client level, the global growth in assets will be driven by three key trends:

  • The increase of mass affluent and high-net-worth-individuals in the SAAAME region.
  • The expansion and emergence of new sovereign wealth funds (SWF) with diverse agendas and investment goals.
  • The increasing defined contribution (DC) schemes partly, driven by government-incentivised or government-mandated shift to individual retirement plans.