In our 2020 Asset and wealth management revolution paper, The power to shape the future, we examined how the US$127 trillion industry was in an ideal position to tackle inequality and drive the green transition. Since then, we’ve seen an unprecedented acceleration in the move towards environmental, social and governance–orientated (ESG-orientated) investments. As investor allocations to ESG funds increase, the industry now has an opportunity to be at the forefront of a burgeoning ESG revolution.
In this report, we highlight the results of a recent PwC global survey of asset managers and institutional investors. Our findings reveal an AWM industry in transition. For asset managers, our analysis of ten market-defining trends stresses the urgency of moving away from ESG-orientated investments and, instead, integrating ESG principles into the heart of their purpose, strategy and investment management processes.
US$33.9 trillion
in projected ESG-orientated AuM by 2026, outpacing the industry as a whole.
8 of 10 US investors
plan to increase their allocations to ESG products over the next two years.
The race is on
to shift allocations and retrofit existing funds to keep pace with investor expectations.
We analyse evolving industry priorities and new stakeholder expectations, identifying ten market-defining trends that are shaping the ESG agenda in the AWM market. Based upon the survey findings, our wide-ranging work with AWM organisations and insights from our community of solvers, these trends show investor expectations of ESG have set the scene for a radical overhaul of how value is defined and delivered within the AWM industry.
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