Happy days are here again, at least according to a new report from Cerulli Associates.
The Boston-based research and consulting firm found global assets under management are set to cross $70.4 trillion by the end of 2013, a full $20 trillion higher than the industry’s low point in 2008. It added that this is a conservative estimate that may need upward revision if the global financial markets continue to perform.
“The Cerulli Report: Global Markets 2013” covers both retail and retirement asset management globally, and reports that non-U.S. assets accounts for more than 50% of total assets, but the “engine of growth” remains the United States in the near term.
“It would be churlish not to feel a sense of optimism about the near- and medium-term outlook for the global asset management industry, especially when considering top-line growth,” Shiv Taneja, Cerulli’s London-based managing director, said in a statement. He adds that even Europe has managed to add $5.9 trillion in assets since 2008.
“The worry, however, is when considering bottom-line growth,” added Yoon Ng, associate director at Cerulli and one of the report’s authors. “Here the picture is less well-defined, as many firms-large and small-continue to have to deal with the effects of the financial crisis and margin pressure. The sunny uplands may beckon, but a good guide is going to be essential.”