One in six asset managers expected to disappear by 2027
The survey from PwC found that the top ten largest asset managers are expected to control half of all mutual fund assets by 2027
In the firm's annual Global Asset and Wealth Management survey, it found that inflation, market volatility and rising interest rates were pushing fees down for asset managers, pushing the rate of turnover for firms to twice its historical rates.
As a result, 73% of asset managers said they were considering strategic consolidation with another asset manager in the near future to gain access to new segments of the market, mitigate risk and build market share.
The top ten largest asset managers are therefore expected to control half of all mutual fund assets globally by 2027, up from 42.5% in 2020, PwC said.
Female experts leading the way on asset management boards
Throughout 2022, global assets under management fell by nearly 10% from $127.5trn to $115.1trn, the largest decline in a decade. However, this is expected to reverse by 2027, with AUM reaching a record $147.3trn.
Olwyn Alexander, global asset and wealth management leader at PwC Ireland, said: «Existential challenges are sweeping the asset and wealth management industry against a backdrop of social, economic and geopolitical disruption. The choice is simple — adapt to the new context or fail.
»Firms that effectively leverage technology such as generative AI and robo-advisers, build meaningful inroads to new and existing customers, diversify their recruitment and deliver exceptional client experiences will be well-positioned to not only survive, but thrive."
As part of this technological surge, more than 90% of asset managers said they were already using tech like AI, big data and blockchain, with assets managed by robo-advisers
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