2022 was not an easy year for asset managers. Assets under management (AuM) were seen to fall to US$115.1 trillion, almost 10% below the 2021 high of US$127.5 trillion. However, striking what feels to be an unusually positive note for the times, PwC has forecast a Global AuM rebound by 2027, with numbers expected to reach a base of US$147.3 trillion. A significant surge is anticipated in private market revenues, alongside the prediction that Asia-Pacific, along with emerging markets in Africa and the Middle East, will be setting the pace for growth. 

In their 2023 Global Asset and Wealth Management Survey, released July 7th, PwC suggests that changes in investor expectations, including a call for greater personalisation of customer proposition, will be a key disrupter of the asset management industry's status quo. The choice is simple, PwC warns; industry players must adapt to new conditions, or fail. 

Faced with the social, economic and geopolitical disruptions of our times, it is imperative that leaders focus on adapting to the changing industry landscape. The PwC report recommendations include:

Search for growth by focusing on what they are good at. By identifying their unique selling point through scale, talent and technology, firms can drive efficiency and profitability. 

Consider the burgeoning access to private markets and the growth of potential in active, as well as passive, Exchange-Traded Funds (ETFs). 

Broaden their retail presence through AI and robo-advice, whilst sustaining a hybrid human and digital delivery model. 

Deliver at scale and consider strategic consolidation. Innovative alliances and small-scale tech-focused deals can bring transformational results for those who don’t have access to large-scale deals. 

Increase their focus on including societal considerations in their performance, such as improving transparency over ESG matters and embracing purpose-led growth in areas such as funding for net-zero transition. 

The PwC’s 2023 Global Asset and Wealth Management Survey aims to assess the industry’s response to macroeconomic and business environment changes. With increasing uncertainty around changing trade-patterns and international economic relationships, alongside interest rates and inflation, it is vital that the asset and wealth management industry, as a pivotal component of the global financial system, continues to evolve.