The assets under management (AUM) of the global asset management industry will reach $96.5trn by 2019, Cerulli Associates has found out in its Global Markets 2015: Key Insights into a Dynamic Landscape report.
Non-US assets will account for over 50% of the AUM at the end of 2015, according to the study.
But the report advises managers to be realistic about the work they have to do in order to gain business in high-growth markets such as China.
“China may be the jewel in the crown from a growth perspective, but regulation continues to favor local managers.
“With the local market firing on all cylinders appetite to invest overseas is minimal. There is also a wealth of private banking and insurance products that offer both liquidity and attractive returns.
“China is a long-term proposition, but one that cannot be ignored,”said Ken F. Yap, director of global analytics at Cerulli.
Cerulli’s report also stresses that Brazil is facing positive regulatory changes and the perspective of establishing an independent distribution network in the country will further open the market to cross-border managers and fuel demand for global products.
The research sees growth potential in Chile’s retail segment and underlines that Mexico is attractive for cross-border managers with the pension market growing fast.
In Europe, managers plan to increase their efforts on Spain, France and Italy.
“Fund-of-funds vehicles are the cross-border asset managers’ favorite point of entry and this segment is booming–total assets in 2014 grew more than 100% from €15bn to €30.6 bn.
“What is also important is that the majority of these vehicles, 96%, are ex-house. They invest primarily in non-proprietary funds,” said Barbara Wall, Europe research director at Cerulli.