Despite a number of Latin American countries facing political and economic uncertainty, the long term growth prospects for the asset and wealth management industry remain strong across the continent according to a report published today by PwC and Sura Investment Management.

The report, titled Asset and Wealth Management Revolution: Latin America’s flourishing opportunities, finds that, despite the challenges faced by the region, assets have grown by 7.9% compounded annual growth rate (CAGR) since 2015 to reach $2.4trn in 2018. These assets are set to grow further at a CAGR of 11.8% to reach $5.3trn by 2025 driven by a rise in pension fund assets and a flourishing middle class as a younger population enters the work force.

Read also Asset & Wealth management Revolution

Pablo Sprenger, CEO Sura Investment Management commented: “The asset and wealth management industry in Latin America is a long-term growth story and players who are able to successfully position themselves in this market now will reap the benefits for a long time to come.”

The asset and wealth management industry in Latin America is a long-term growth story and players who are able to successfully position themselves in this market now will reap the benefits for a long time to come.”

The report identifies four key trends driving change in the Latin American asset and wealth management industry:

1. Buyers’ market Demand for product and fee transparency driven by regulators, as well as the millennial generation becoming the main investor group, are shifting the power from the asset managers towards investors. This will result in the industry having to battle increasing fee pressure on the one hand and increasing costs on the other. Asset and wealth managers must be proactive in light of the current situation, providing value for money and meeting client demands on product, communication and reporting in a cost efficient way.

Read more @International Investment