Asia-Pacific’s asset and wealth management (AWM) industry is set to experience the highest rate of growth globally by 2025, according to global consulting firm PwC.
Accounting for $15.1 trillion for global assets under management (AuM) in 2017, that figure is expected to rise to $29.6 trillion in 2025, PwC predicts in its January 2019 report, Asset & Wealth Management 2025 – The Asian Awakening.
Among the key developments, PwC notes that Shanghai will join the existing regional asset management hubs, namely Singapore and Hong Kong. In addition, Asia will be a key global destination for infrastructure investment and this will be partially fuelled by the growth from China’s Belt and Road Initiative (BRI) amongst others.
While Asia lags behind Europe and the US when it comes to cross-border regulation, there is a greater regional push. PwC notes that “cooperation is taking the form of regional passport schemes coupled with new collective investment vehicles and APAC [Asia-Pacific] is looking to outperform other regions through increasing collaboration and integration.”
As global headwinds continue to grow – from Brexit to US-China trade tensions – “uniform challenges across the region do persist”. These include geopolitical issues, trade tensions and a potential market correction which could all disrupt the industry.
©2019 funds europe
