Asset & Wealth Management Revolution

Growth in the LatAm AWM industry has been strong in recent years, with assets growing at a 13% CAGR post Global financial crisis. Despite global economic uncertainties, as well as rising political and trade tensions, we believe that short-term effects will be shrugged off post 2020 and assets (in US dollars) will rise by 2025. In fact, we predict a 12.3% CAGR between 2020 and 2025, with assets reaching above the US$5 trillion mark.

Figure 1: Evolution of AuM (in US$ billion)

^{Source: PwC Global AWM Research Centre, National Regulators, Lipper, IMF, FSB, ANBIMA
*Note: percentage values within red squares respond to the CAGR for each respective period when fixing the constant US$ exchange rate at 2007.}

Institutional investors, namely pension funds and insurance companies, will be the main drivers of asset growth - especially as the rising middle class begins to save for retirement. Additionally, as the younger generation comes into a massive wealth transfer globally, we expect to see ETFs becoming more popular and commonplace.

Figure 2: LatAm Client Assets (in US$ billion)

^{Source: PwC Global AWM Research Centre analysis. Past data based on Lipper, Brazilian Financial and Capital Markets Association (ANBIMA), Cámara Argentina de Fondos Comunes de Inversión (CAFCI), Mexican Venture Capital and Private Equity Association (AMEXCAP), Asociación Colombiana de Fondos de Capital Privado (ColCapital), Asociación Chilena Administradoras de Fondos de Inversión (ACAFI), IMF, ICI, Asociación Internacional de Organismos de Supervisión de Fondos de Pensiones (AIOS), Superintendencia de Banca de Perú (SBS), Financial Stability Board (FSB).}

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