|
Laxman Pai, Opalesque Asia: Alternatives accounted for almost half of all global asset management revenues in 2019, though the sector represents only 16% of assets under management, said a study.
Alternatives continued to be among the strongest asset classes in 2019, with AuM growth accelerating to 13%, said the 18th annual report on the global money management industry by Boston Consulting Group. Alternatives accounted for $137 billion, or 46%, of a total $296 billion in revenues last year.
BCG forecasts that this revenue figure will rise to $162 billion, or 49%, of a total $333 billion in money management revenues by 2024. In 2018, alternatives accounted for $126 billion or 45% of a total $283 billion in revenue.
The key driver of this growth, the report says, will be investor demand for heightened performance, uncorrelated returns, illiquidity premiums, and other nontraditional return profiles-particularly as institutions across the globe face the challenge of a widening gap between assets and liabilities.
Hedge funds falling out of favor ?
However, "not all alternatives are created equal," the report said, with hedge funds falling out of favor. In 2019, hedge funds assets under management fell to $23 trillion from $24 trillion a year earlier and is expected to drop to $20 trillion by 2024.
Hedge funds revenues are forecast to drop to $28 billion in 2024, from $35 billion in 2019, having already fallen from $38 billion in 2018.
&...................... To view our full article Click here
|
RSS
