As per the latest report from the Boston Consulting Group (BCG) stated, that amidst the economic meteoric turmoil due to the outcome of the COVID-19 Pandemic, the Asset Management Industry in the Middle East has nurtured by 11 percent to $1.2 trillion within the preceding year 2020 as far as from $1.1trillion in 2019, powered by the Assets of the Sovereign Wealth Funds.
BCG in their report titled, “Global Asset Management 2021: The $100 Trillion Machine”, stated further core driver of the AuM progression was the retail investors. Numerous SWFs had huge equity acquaintance for developing as well as emerging markets, coping well as the financial topography had recovered degree of pre-pandemic firmness. In addition, retail mutual funds in the territory witnessed a 12 percent boost during 2020, with robust global market routine prompting this conclusion.
Meanwhile at the global level, overall net inflows for the asset management industry touched out a global figure of $2.8 trillion in 2020, or 3.1 percent of the total AuM at the commencement of the year – comparatively to a historical average between 1-2 percent over the preceding decade, the report stated.
BCG’s Managing Director and Partner Harold Haddad stated out that; “Much like every sector, the resilience of the asset management industry was tested in 2020, with initial outbreak disruption and subsequent economic tailwinds presenting a period of sizeable uncertainty for the industry and its incumbents.”
“However, the Middle East has prevailed in the face of adversity, and it is now apparent that the region has entered 2021 in a position of strength following healthy returns.” The Retail Investors have proved in their mettle as they have been the core drivers behind the AuM progression.
The Global Retail AuM portfolios have nurtured globally within the 11 percent within 2020, displaying 41 percent of the globalized assets touching at $42trillion. Institutional investments also have intensified at a comparable pace to touch around a base of $61 trillion, or 59 percent of the cumulative global market.