Steven Libby, PwC Luxembourg Asset & Wealth Management Leader;
Credit: PwC Luxembourg
PwC has revealed in a new report that it is on the way to surpassing the $145.4 trillion mark by 2025.
In the new report entitled "Asset & Wealth Management Revolution: Embracing Exponential Change", PwC has unveiled that global assets under management could double by 2025, reaching $145.4 trillion versus $84.9 trillion in 2016, representing an annual growth of 6.2%.
While the report has predicted an exponential growth for asset management, it has also signalled the fact that businesses are facing multiple changes.
The report has concluded that, in addition to the doubling in asset management by 2025, alternative asset classes will more than double to $21.1 trillion by 2025 and asset management will increase its presence in niche markets such as trade finance, personal loans and infrastructure. Moreover, whilst active management will continue to grow and play an important role, reaching $87.6 trillion in 2025 (60% of global assets), PwC has revealed that it also expects passive management growth of $36.6 trillion by 2025 (25% of global assets).
PwC Luxembourg’s Asset & Wealth Management Leader Steven Libby highlighted three points of intervention for the actors of the sector in light of such changes: "First, to differentiate and bring costs down, managers will have to rethink the company's structure. Then, the technology will have to be integrated in each stratum of the organisation […]. Finally, the composition of diversified teams will be necessary. Attracting, developing and retaining talent will become vital in a context of permanent reinvention."
