Asset management is looking to expand significantly, based on research by PricewaterhouseCoopers. According to the study, global assets under management will rise to $101.7 trillion by 2020.
The bulk of the asset management industry remains concentrated in the US and Europe, and while it stands to stay that way for the foreseeable future, the industry is fast reaching South America, Asia, and Africa. The increasing population of high net worth individuals in these regions, along with the expansion and emergence of pension and sovereign wealth funds, has been improving investments.
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| Image source: processindustryforum.com |
Asset management is looking to move to the center stage after being in the shadow of the banking and insurance industries. But the trend shows that there is a rapid growth and rising popularity for alternative investments.
There is also a prevailing change in the investor’s mindset. Traditional investments such as stocks and bonds are no longer the optimal options, because they do not generate as much wealth to reach the desired investment objectives.
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| Image source: internationalsustainabilityalliance.org |
Technology is also helping the elevation of asset management, which has usually operated within a relatively low technological infrastructure. In the next half-decade, technology will become critical in cementing client relationships, information gathering, operational efficiency, and financial and tax reporting.
Jon Bourbeau is the founder of Pacer Partners, a boutique real estate and asset management firm with offices in New York City and Miami. Learn more about asset management by visiting this Facebook page.
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