Latin America’s growth prospects for asset and wealth management remain strong, according to a co-led report published by PwC and Sura Investment Management. The report found that Latin America’s AUM (assets under management) assets reached $2.4 trillion in 2018 growing at a CAGR of 7.9 percent since 2015.
Latin America’s AUM are estimated to grow at a CAGR of 11.8 percent to reach $5.3 trillion by 2025 as a result of rising pension fund assets and a developing middle class population.
The report is titled Asset and Wealth Management Revolution: Latin America’s flourishing opportunities.
Pablo Sprenger, CEO Sura Investment Management, told the local media that, “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.”
Four key trends have been identified as the driving force behind the growth of Latin America’s asset management and wealth management in Latin America. These trends are product demand, evolving technologies, funding prospects, and ESG-related strategies.
It appears that new products, strategies, regulations and technologies will build Latin America’s assets and wealth management in the coming years.
Last year, Latin America recorded the second highest growth for assets under management following China. The industry grew from $1.5 trillion to $1.8 trillion, with an increase of 17 percent based on a new report by the Boston Consulting Group.
The BCG report said that the region’s industry is exponentially growing despite having a small cluster of assets under management of $1.8 trillion of the $79.2 trillion as per global standards.