• Home
  • News
    • People moves
    • Africa
    • Asia
    • Australia
    • Canada
    • Caribbean
    • Domicile
    • Europe
    • Latin America
    • North America
    • Middle East
    • US
    • US
    • UK
  • Products
    • Funds
    • Pensions
    • Platforms
    • Insurance
    • Investments
    • Private Banking
    • Citizenship
    • Taxation
  • Fintech
  • Regulation
  • ESG
  • Expats
  • In Depth
  • Special Reports
  • Directory
  • Video
  • Advertise with us
  • Directory
  • Events
  • European Fund Selector
  • Newsletters
  • Follow us
    • Twitter
    • LinkedIn
    • Newsletters
  • Advertise with us
  • Directory
  • Events
    • Upcoming events
      event logo
      International Investment Nordic Forum 2021

      International Investment is delighted to announce the 2021 International Investment Nordic Forum which will take place on Tuesday March 9, at 9am (GMT). This curated virtual event will be broadcast live and will feature a series of fund manager interviews and presentations, as well as interviews with some of the Nordic regions top fund selectors.

      • Date: 09 Mar 2021
      • ONLINE, ONLINE
      View all events
  • European Fund Selector
International Investment
International Investment

Sponsored by

Sharing Alpha
  • Home
  • News
  • Products
  • Fintech
  • Regulation
  • ESG
  • Expats
  • In Depth
  • Special Reports
  • Video
  • Emerging Markets

Latin American AuM will more than double by 2025: PwC report

Latin American AuM will more than double by 2025: PwC report
  • Christopher Copper-Ind
  • @intlinvestment
  • 09 December 2019
  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  

Despite a number of Latin American countries facing political and economic uncertainty, the long term growth prospects for the asset and wealth management industry remain strong across the continent according to a report published today by PwC and Sura Investment Management.

The report, titled Asset and Wealth Management Revolution: Latin America's flourishing opportunities, finds that, despite the challenges faced by the region, assets have grown by 7.9% compounded annual growth rate (CAGR) since 2015 to reach $2.4trn in 2018. These assets are set to grow further at a CAGR of 11.8% to reach $5.3trn by 2025 driven by a rise in pension fund assets and a flourishing middle class as a younger population enters the work force.

Related articles

  • Latin American AUM will more than double by 2025: PwC report
  • Pension funds' AUM set to rise to $61trn
  • Asia Pacific wealth and asset management industry to double to $29.6 trillion by 2025
  • LatAm giant Sura targets Brazil for wealth push

Pablo Sprenger, CEO Sura Investment Management commented: "The asset and wealth management industry in Latin America is a long-term growth story and players who are able to successfully position themselves in this market now will reap the benefits for a long time to come."

The asset and wealth management industry in Latin America is a long-term growth story and players who are able to successfully position themselves in this market now will reap the benefits for a long time to come.”

The report identifies four key trends driving change in the Latin American asset and wealth management industry:

1. Buyers' market
Demand for product and fee transparency driven by regulators, as well as the millennial generation becoming the main investor group, are shifting the power from the asset managers towards investors. This will result in the industry having to battle increasing fee pressure on the one hand and increasing costs on the other.  Asset and wealth managers must be proactive in light of the current situation, providing value for money and meeting client demands on product, communication and reporting in a cost efficient way.

2. Digital technologies - do or die
Asset managers operating in Latin America will need to adapt to new technologies to enhance the client experience of a young and technology savvy generation. Given this relatively younger population and lower annual income, robo-advisors in the region could see a stronger than expected growth. Asset managers should also look to incorporate new technologies such as Robotic Process Automation (RPA) and Artificial Intelligence (AI) across the value chain to drive down costs and increase efficiency.

3. Funding the future
Latin America faces significant funding pressure and constraints in the coming years, especially as public debt continues to rise. Asset managers should look to play a larger role in this space by providing funding for infrastructure projects in this region and helping save for retirement through relevant product offerings.

4. Outcomes matter
Asset managers across Latin America must adopt new strategies, especially regarding alternatives and ESG, if they are to succeed in the increasingly competitive market. As demand increases, institutional investors will critically analyse alpha and beta - those managers who are able to provide alpha will flourish, but those who cannot will struggle in the coming years.

Fanny Sergent, PwC Partner, commented: "We will see major changes to regulations, products, distribution, technology and talent in the coming years in Latin America. In line with this, we believe asset managers are well-placed to seize the opportunities, as long as they take note of the new challenges that will emerge in the shifting environment."

Subscribe to International Investment's free, twice-daily, newsletter

  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  
  • Topics
  • Emerging Markets
  • Latin American
  • PwC
  • Sura Investment Management
  • Latin America

More on Emerging Markets

Comment: A mixed outlook for frontier markets in 2021

  • Comment
  • 05 January 2021
Interview: NS Partner's Ian Beattie considers prospects for emerging markets

  • Emerging Markets
  • 04 December 2020
Emerging market debt funds are yet to recover from covid-19: report

  • Funds
  • 25 November 2020
Comment: Investors keep faith with Africa's tech scene amid pandemic

  • Comment
  • 16 October 2020
HSBC Global AM launches emerging market UCITS ETF

  • Emerging Markets
  • 28 August 2020
Back to Top

Most read

SharingAlpha's 2020 top rated funds by category revealed
SharingAlpha's 2020 top rated funds by category revealed
Duff & Phelps opens Gibraltar office
Duff & Phelps opens Gibraltar office
Brexit deals hefty blow to City but industry is ready to fight back
Brexit deals hefty blow to City but industry is ready to fight back
Comment: Are cryptocurrencies the new gold?
Comment: Are cryptocurrencies the new gold?
Tabula launches world's first Paris-aligned fixed-income ETF
Tabula launches world's first Paris-aligned fixed-income ETF
  • Contact Us
  • Marketing solutions
  • About Incisive Media
  • Terms and conditions
  • Policies
  • Careers
  • Twitter
  • LinkedIn
  • Newsletters

© Incisive Business Media (IP) Limited, Published by Incisive Business Media Limited, New London House, 172 Drury Lane, London WC2B 5QR, registered in England and Wales with company registration numbers 09177174 & 09178013

Digital publisher of the year
Digital publisher of the year 2010, 2013, 2016 & 2017
Loading