Meanwhile, passives are set to drive just 6.4% of global revenues by 2027, despite accounting for 26.4% of global AUM in 2022.ĪPAC and emerging markets to set pace of growthĪsia-Pacific, along with emerging markets in Africa and the Middle East, will set the pace of growth in AUM. Private markets, which represented 10.6% of AUM in 2022, will drive 49.7% of global revenues by 2027. PwC expects this increase to be led by a continued surge in private markets revenues, which will account for around half of global AWM revenues by 2027, up from 37.6% in 2020.
The report demonstrates that as the global economy heads back into growth, and inflationary and interest rate pressures ease, global AWM revenues will bounce back to reach US$622.1 billion by 2027, topping the record highs of US$599.4 billion generated in 2021. Private markets to drive AWM growth and returns By 2027, PwC expects direct indexed AUM to have more than tripled to US$1.47 trillion, roughly 1% of total AUM, while active ETFs are forecasted to rise from US$4.6 billion to US$1.1 trillion – accounting for 7.5% of the global ETF market by 2027. Nearly 40% of institutional investors are planning to invest in custom indexing products in the coming 12 to 24 months, whereas almost half of asset managers expect to add individualised indexing solutions to their offering. Individualised indexing is also gaining popularity, particularly among investors seeking tax optimisation benefits, as well as those interested in ESG, factor investing and algorithmic portfolio construction. PwC predicts assets managed by robo-advisers will reach US$5.9 trillion by 2027, more than double the figure of US$2.5 trillion in 2022. Other key findings and themes from the report include:Īsset and wealth managers are turning to AI, disruptive technologies and individualised indexing Olwyn Alexander, Global Asset & Wealth Management Leader, PwC Ireland, said: However, AUM are expected to rebound by 2027, reaching US$147.3 trillion (representing a compound annual growth rate (CAGR) of 5%). The survey finds that inflation, market volatility and interest rate movements are by far the biggest concerns for both investors and asset managers over the next 12 to 24 months. This represented the greatest decline in a decade. The report, based on PwC’s latest industry projections and a survey of 250 asset managers and 250 institutional investors, paints the picture of an industry grappling with a set of challenges – digital transformation, shifting investor expectations, consolidation and “retailisation”.Īs a result, 73% of asset managers are considering a strategic consolidation with another asset manager in the coming months in order to gain access to new segments, build market share and mitigate risks.įirms are also turning to technology to transform, with more than 90% of asset managers already using disruptive technological tools (including big data, AI and blockchain) to enhance investment performance.Ī direct consequence of these pressures – and the drive to deliver at scale amid cost and competitive pressures – is that by 2027, PwC expects the top ten largest asset managers to control around half of all mutual fund assets globally, up from 42.5% in 2020.Īsset managers faced a tough year in 2022, with global assets under management (AUM) falling to US$115.1 trillion, nearly 10% below the 2021 high (US$127.5 trillion). LONDON, 10 July 2023 – One in six (16%) asset and wealth managers globally are expected to be swallowed up or fall by the wayside by 2027, twice the historical rate of turnover, according to PwC’s 2023 Global Asset and Wealth Management Survey, published today. Top ten largest asset managers to control around half of mutual fund assets globally by 2027, up from 42.5% in 2020, with private markets to account for up to half of AWM revenues by 2027, up from 37.6% in 2020.Nearly three-quarters (73%) of asset managers are considering a strategic consolidation with another asset manager.Inflation, market volatility, and interest rate movements are by far the biggest concerns for investors and asset managers over the next 12-24 months.Assets managed by robo-advisers will reach US$5.9 trillion by 2027, more than double the figure of US$2.5 trillion in 2022 More than 90% of asset managers are already using disruptive tech like AI, big data, blockchain.AUM to rebound by 2027, reaching US$147.3 trillion – representing a compound annual growth rate of 5%.Global assets under management fell to US$115.1 trillion in 2022 – nearly 10% below the 2021 high (US$127.5 trillion) – representing the greatest decline in a decade.
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