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.
PricewaterhouseCoopers said in its latest global report — Asset and Wealth Management Revolution: The Power to Shape the Future — that money and wealth managers currently run more than $110 trillion, more than 20 times the U.S. federal budget.
Global pension fund assets are expected to grow to almost $65 trillion by 2025, from more than $50 trillion in 2019, the report said.
Infrastructure assets are expected to more than double to $2.06 trillion, up from $975.6 billion in 2019.
PwC said the opportunities in developed markets will be in refurbishing roads, airports, hospitals and other infrastructure, while accelerating developments in areas including 5G and renewable energy.
"There is an even greater need for investment in emerging markets, both in traditional areas and in the new digital infrastructure, as we see increased urbanization," the report said.
Global private debt will also grow, with a forecast of $1.8 trillion in assets under management by 2025 — up 61.3% from 2019 figures.
Environmental, social and governance assets under management are also expected to grow, particularly in European markets. PwC analysis shows ESG assets will account for between 41% and 57% of total mutual fund assets by 2025.
PwC added that the key challenge for managers is that investors will still expect them to deliver strong financial returns.
"Asset and wealth management firms can channel capital and target investment opportunities to lift economies out of recession," Olwyn Alexander, global asset and wealth management leader, said in a comment accompanying the report. "It is important to understand the power the industry has in influencing the future. A better future for everyone: investors, shareholders and the economy as a whole. The world we leave for future generations matters. The industry can act now to realize beneficial change."