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Laxman Pai, Opalesque Asia: From now until 2030, domestic equity, fixed income, and alternatives markets will garner nearly $20 trillion in net new money, almost four times more than the $4.5 trillion in net flows into international equity, fixed income, and alternatives markets over the same period said a study.
Additionally, 85% of investments will be in local versus cross-border investments by 2030, versus 74% in 2021, a substantial shift said a study by Indefi, a strategy advisor for asset managers worldwide.
According to Indefi, asset managers will increasingly struggle to run global enterprises, as cross-border investments shrink. This trend also is fueled by another significant wave in asset management: the importance of the individual, not the institution.
According to Indefi, by 2030, retail investors will account for more than 61% of global assets under management, up from 52% in 2021. Institutional assets meantime is slowly losing ground, from 31% in 2021 to a projected 26%, out of a total $175 trillion by 2030.
Similarly, by 2030, 67% of the revenues in the industry will come from retail investors, versus 61% in 2021. This shift is helping fuel deglobalization too as retail investments are typically more regulated than their institutional counterparts. With more money "staying home" and in retail vehicles, deglobalization will accelerate.
In addition, Indefi's new research demonstrates that China will provide nearly half (45%) of net ...................... To view our full article Click here
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