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Laxman Pai, Opalesque Asia:

Deal volume and value in asset and wealth management (AWM) eased during the third quarter after an unprecedented first half of 2019, said PWC. Still, deal activity is on track to set an annual record during 2019.

Three forces have been spurring consolidation: fee pressure, slowing growth in assets under management, and the persistent shift from active to passive investing.

Wealth management remained the most active sub-sector, with dealmaking fueled primarily by continued consolidation among registered investment advisors (RIAs). Reported deal value fell to the lowest level since the first quarter of 2018 because of the absence of a reported megadeal.

According to the report, the disclosed deal value during Q3 slumped 74% compared with the second quarter. Still, the total deal value of $13.7 billion during the first nine months of 2019 is nearly three times the total during the same period of 2018.

Deal volume fell to 48 transactions during the third quarter compared with 63 during Q2: a 24% decline. Yet the total of 161 transactions during the first nine months of the year is still far higher than the 115 announced during the same period of 2018.

The total AWM deal volume is on track to surpass the reported deal volume for all of 2018: The number of transactions during the first nine months of 2019 is only 16 deals shy of the record 177 deals announced during all of 2018.

"Overall, we expect a strong close to t......................

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