Global asset management set to hit $200 trillion by 2030

Global Asset Management Industry Projected to Reach $200 Trillion by 2030

Private Markets Lead Growth

The global asset management sector is expected to reach $200 trillion by 2030, up from $139 trillion in 2024, according to PwC’s latest Global Asset and Wealth Management report. Private markets are expected to account for more than half of future income, signaling a major change in the investment landscape.

PwC’s survey of 300 asset managers, institutional investors, and distributors worldwide estimates that private market revenues could hit $432 billion within five years. Falling inflation and lower interest rates are encouraging investors to move cash savings into investment markets, said Albertha Charles, PwC UK’s global asset and wealth management leader.

Profitability Pressures Continue

Despite asset growth, profitability challenges persist. Rising competition, lower fees, and high operational costs have weighed on earnings. Over the past five years, 89 percent of surveyed asset managers reported profit pressures. Profits relative to assets under management fell 19 percent since 2018 and are expected to drop another 9 percent by 2030.

Charles said private markets will drive much of the growth. She added, “Not everyone will benefit. Those who succeed will be the ones that reinvent their business models and define where they deliver unique value.”

FCA Pension Funds Show Low UK Stock Allocation

The Financial Conduct Authority’s (FCA) defined benefit pension scheme holds just 4 percent of its equity portfolio in UK stocks. This is far below the private sector average. The £556.9 million scheme, closed to new members, mainly invests in debt securities, with only £1.8 million in domestic equities.

Private sector defined benefit funds typically allocate around 25 percent of equities to UK stocks. Analysts say the low allocation highlights a gap between public guidance and internal practices.

The FCA also manages a £1.57 billion defined contribution scheme for staff, with UK equities making up roughly 3 percent of total assets. Trustees operate independently, aiming to maximize returns while managing risk.

UK Public Borrowing Surpasses Forecasts

The UK government borrowed £17.4 billion last month, exceeding forecasts of £15 billion, according to the Office for National Statistics. Total borrowing in the first seven months of the fiscal year reached £116.8 billion, nearly £10 billion above previous estimates.

Economic Indicators Suggest Fragile Outlook

Other indicators point to a weak domestic economy. Retail sales fell 1.1 percent in October. A GfK survey showed consumer confidence at minus 19, down two points. The S&P Global/CIPS flash UK PMI indicated minimal private sector growth in November. Economists warn that higher taxes in the upcoming Budget may further limit spending during the holiday season.

Industry Events and Market Developments

In other financial news, billionaire investor Bill Ackman is preparing a public listing for Pershing Square Capital Management, expected early next year. Meanwhile, the FT’s Future of Asset Management Europe conference, held on November 25–26 at Landmark London, will feature speakers from the London Stock Exchange and Schroders. The event will focus on trends, regulation, and market innovation.