Asset Management in 2020

Capital markets will face crucial changes until 2020. Global wealth will grow to $222 trillion. An outlook for ETFs in Europe, the US and Asia as well as imperatives to be successful as an alternatives manager.

According to the Boston Consulting Group study “Wining the Growth Game: Global Wealth 2015”, the private financial wealth grew 2014 by 12 percent to $164 trillion. Until 2019, BCG expects that global financial wealth will grow by a compound annual growth rate of six percent to $222 trillion. Providers of exchange traded funds (ETFs) and alternative assets are likely to benefit from this wealth growth:

In their outlook “ETFs in 2020”, PwC sees investor driven demand for ETFs continuing until 2020 as they wish for transparent, low cost and liquid investment products. Although ETFs are an financial innovation itself, an evolution in the ETF industry is and will take place. In a video series, PwC has a look at the European, US and Asian ETF market.

In a base case, PwC expects that alternative assets increase to $13.6 trillion in 2020. In a high case, alternative assets may even grow to $15.3 trillion. In their video about the study “Alternative asset management 2020: Fast forward to centre stage”, PwC explains what asset manager must do to participate from this group.