8OCTOBER 2023THE ASSET MANAGEMENT INDUSTRY IN ASIA: WHAT COULD THE FUTURE HOLD?The rapidly growing mass-affluent and affluent segments in Asia have created significant opportunities for the asset management industry, with the wealth pool of this group projected to hit USD 4.7 trillion by 2026, up from USD 2.7 trillion in 2021 according to McKinsey analysis. GAM Investments' Head of Asia Rossen Djounov explores the opportunities and challenges he believes the asset management industry in Asia is likely to face in the years ahead.Shifting demographicsLife expectancies, fertility rates, and mortality rates all vary significantly across Asia. Many developed Asian countries, particularly those in northeast Asia, are facing aging populations which is likely to increase demand for retirement products. While we have seen China's recent reopening restore the consumer and luxury sectors in the short term, the Chinese government's efforts to move to an olive shaped distribution of wealth, with the majority of the population falling into a middle-income bracket, is likely to also increase demand for wealth management services.South Asian economies such as India and Indonesia tend to have younger populations, who are prepared to take on greater risk for higher returns. As these younger, `digitally native' generations become more affluent and financially savvy, they will likely demand a more personalised experience, comprised of bespoke and innovative investment solutions and services, which they can access digitally. By Rossen Djounov, Managing Director - Head of Asia, GAM Investments [SWX: GAM]OPINIONIN MY
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