Asia-Pac's assets under management to hit US$16.2t by 2020

Here are the main growth drivers.

According to PwC, Asia Pacific assets under management are expected to rise to an estimated US$16.2 trillion by 2020, from a total of US$7.7 trillion in 2012. This represents a compound annual growth rate (CAGR) of nearly 10%.

Globally, AuM are projected to increase to around US$101.7 trillion by 2020, from a 2012 total of US$63.9 trillion, a CAGR of nearly 6%. 

AuM in the SAAAME (South America, Asia, Africa, Middle East) economies are set to grow faster than in the developed world in the years leading up to 2020, creating new pools of assets that can potentially be tapped by the asset management (AM) industry. 

This was revealed in PwC’s Asset Management 2020: A brave new world report. However, the majority of assets will still be concentrated in the US and Europe.

“Based on our projected figures for 2020, Asia will account for 16% of global funds under management, but nearly two-thirds of the world’s population. In addition, Asia’s middle class has experienced terrific growth relative to other regions over the last 20 years. 

This disparity suggests enormous opportunities for asset management growth across the region,” says Marie-Anne Kong, PwC Asset Management Leader for Hong Kong.

“Hong Kong’s asset management industry might not be on the same level as, say, New York or London at the moment, but there’s no denying the fact that it’s growing rapidly,” adds Miss Kong. 

Growth drivers
Asia Pacific AuM growth will be driven by the rise in high-net-worth individuals (HNWIs) and sovereign wealth funds (SWFs). The likely internationalisation of the renminbi by 2020 will also position the region as a significant AM market. 

Hong Kong in particular is in a unique position to capitalise on the increasing cross-border collaboration. And when the Chinese and Hong Kong regulators formally recognise each other, they will present the city with an opportunity to become one of the world’s major asset management centres.