Global assets under management (AUM) will increase to around USD 101.7 trillion by 2020, from a total of USD 63.9 trillion in 2012, representing a compound annual growth rate (CAGR) of nearly 6 per cent, research firm PwC has said.
The report titled 'Asset Management 2020: A brave new world' 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.
PwC said that AUM in the Middle East and Africa will rise to USD 1.5 trillion by 2020, from a total of USD 0.6 trillion in 2012. This represents a CAGR of nearly 12 per cent.
AUM growth in the Middle East will be mainly driven by positive economic outlook, family businesses and entrepreneurship and the population demographics, the report said.
Globally, PwC predicts pension fund assets will grow by 6.6 per cent a year to reach USD 56.5 trillion by 2020 from a total of USD 33.9 trillion in 2012. Mass affluent (those with wealth between USD 100,000 and USD 1 million) clients and high-net-worth-individuals (wealth of USD 1 million or more) in SAAAME regions are key drivers of growth.
Bhavin Shah, Middle East based Asset Management expert, at PwC, said that the response to the game changers identified will require considerable thought in order to create great strategy.