Global assets under management (AUM) are expected to reach US$101.7 trillion ($112.8 trillion) by 2020.
That’s up from $63.9 trillion ($70.8 trillion) in 2012, according to a report from PwC.
Most of the world’s wealth will remain concentrated in North America, with AUM in that region growing from US$33.2 trillion ($36.8 trillion) to US$49.4 trillion ($54.8 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.
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 US$56.5 trillion ($62.6 trillion) over the next six years. About US$30.1 trillion ($33.4 trillion) of that total will be concentrated in North America.
Sovereign wealth funds are also becoming more prominent in global markets. The study says they’ll be worth nearly US$9 trillion ($10 trillion) by 2020, up from about US$5 trillion ($5.5 trillion) in 2012. Funds in the Middle East and Africa will grow the fastest.
A version of this story originally appeared on our sister publication, Advisor.ca.
Related articles: