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Laxman Pai, Opalesque Asia:

Global assets under management run by money and wealth managers are set to grow by up to 5.6% a year by 2025, to $147.4 trillion.

Money and wealth managers currently run more than $110 trillion, more than 20 times the U.S. federal budget, said a report by PricewaterhouseCoopers. AUM has grown by more than 40% in the past five years.

The latest global report, 'Asset and Wealth Management (AWM) Revolution: The Power to Shape the Future', revealed that global pension fund assets are expected to grow to almost $65 trillion by 2025, from more than $50 trillion in 2019.

"In retirement saving, specifically, pension funds now manage almost US$50tn in assets, and we forecast that this will grow to US$62.5 trillion by 2025, providing an attractive opportunity for asset managers," it said.

Institutional investors hold more than 40% of global market capitalization. This is higher in some markets-e.g., the US at 72%.

Meanwhile, infrastructure assets are expected to more than double to $2.06 trillion, up from $975.6 billion in 2019. Global private debt AuM will grow to 0.8 trillion by 2025.

At US$41 trillion, nonbank lending to the private non-financial sector now exceeds bank lending in advanced economies.

"Alternatives will play a central role in getting economies back on their feet and laying a foundation for growth while boosting risk-adjusted financial return," said the report.

Investors are putting the......................

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