Global AUM to exceed $100 trillion by 2020

Global assets under management will nearly double by 2020, says a new PwC report.

From a total of $63.9 trillion in 2012, adds the study, total global AUM will likely hit $101.7 trillion over the next six years.

Most of the world’s wealth will remain concentrated in North America, with AUM in that region growing from $33.2 trillion to $49.4 trillion.

Yet, AUM in South America, Asia, Africa and the Middle East may rise faster. This will create new pools of assets that can be tapped by the wealth management industry, says the study.

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“North America will continue to be an asset management powerhouse, [but] some of the emerging markets are quickly making inroads,” says Raj Kothari, a managing partner at PwC.

Pension fund assets will help drive global asset growth, adds the study. These assets are expected to grow by 6.6% each year until 2020, meaning pensions will expand to $56.5 trillion over the next six years ($30.1 trillion of that total will be concentrated in North America).

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Sovereign wealth funds are also becoming more prominent in global markets. The study says they’ll be worth nearly $9 trillion by 2020, up from about $5 trillion in 2012. Funds in the Middle East and Africa will grow the fastest.

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“The asset management industry will have to address new pressures and expectations in coming years, as well as increasing demand for transparency,” says Kothari.

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