02-01-2017, 08:31 AM
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It's 42
Industry Role:
Join Date: Jun 2010
Location: Global
Posts: 18,083
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Trumpanzees: Hedge funds will keep winning big with Trump
In your dreams ....
#winning
Quote:
The narrative for alternative investments is about to change, claims Michael Spellacy, global wealth management leader at PwC?s asset management practice, a unit selling consulting services to wealth managers. He anticipates the sector growing 11.2% per year until 2020, which, if true, would make it a $15.3 trillion industry over the next four years.
Let?s put that in context. Alternatives grew only 6.6% in 2015. But if you go back 12 years, to include the boom period for hedge funds and private equity, you?ll find the class grew on average 12.3% annually. So robust double-digit growth, but not yet above its trend line.
Why the boomlet? Everything from hedge funds taking large positions in infrastructure investments, to small firms able to survive more easily with fewer regulations under the Trump administration, and the wealthy seeking higher yield and pouring additional capital into the space. It?s already happening. Since Trump?s victory, PwC has noticed wealth managers laying out a wider range of alternative investments to present to clients.
Spellacy says that alternative assets will be a $15.3 trillion market and the growth will be split along the following lines: $7.4 trillion in private equity, $5 trillion in hedge funds, and $2.9 trillion in real assets. Among them, ?real assets and private equity should experience the highest growth at 12.6% and 12% annually,? he says. Hedge funds should, in contrast, only grow by 9.3% annually until 2020.
What does this all mean for you? Expect to field more alternative investment pitches from your private bank over the next few years.
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Next Big Pitch: Alternative Investments - Penta Daily - Barrons.com |
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