Global assets under management will top the $100 trillion mark by 2020, according to a new report by professional services firm PwC.

And the industry will come out of the shadows of related businesses like banking and insurance and move to centre stage.

PwC Bermuda asset management leader Scott Watson-Brown said: “The findings in the report bode well for Bermuda.

“We are continuing our focus on bringing the Island forward as a long-term, sustainable platform for asset managers seeking a jurisdiction that can provide an operating environment that understands their needs and offers solutions.”

The special report by PwC experts identifies six “gamechangers” set to influence the industry in the third decade of the century.

These include new regional blocks around the world — North Asia, South Asia, Latin America and Europe.

And it said that assets available for professional management in South America, Asia, Africa and the Middle East are set to rocket over the next few years.

The report added: “However, the majority of assets will still be concentrated in the US and Europe.”

And it predicted that global asset management growth will come from pension funds, the super-rich — especially from emerging nations — and sovereign wealth funds, as well as from an increase in defined contribution pension schemes.

It is estimated that pension fund assets will hit almost $57 trillion by 2020 — a 6.6 percent growth year-on-year from a 2012 total of $33.9 trillion.

The report added that new fee models will result from more regulation and pressure for transparency and impact on the cost structure of the industry.

And it warned that new breed of asset managers with streamlined businesses, targeted solutions for customers and stronger and more trusted brands will develop — some from alternative firms.

The report also said that technology will become more important by 2020, with applications in customer engagement, client research, efficiency and regulatory and tax reporting.

It added: “At the same time cyber risk will have become one of the key risks for the industry, ranking alongside operational, market and performance risk.”

Mr Watson-Brown said: “The coming years will bring the industry higher volumes of assets than ever before which places more responsibility on firms to manage these assets to the best of their collective ability.

“Asset managers must clearly outline the value they bring to customers while being fully transparent over fees and costs.”

He added: “There is no one solution to building the successful asset manager of 2020 and beyond. Asset managers that develop coherent strategies and act with integrity towards clients are likely to build the brands that are not only successful in 2020, but that retain the trust of their clients.

“The response to the gamechangers we’ve identified will require considerable thought in order to create great strategy.

“The successful asset managers of 2020 will have already started to shape their responses to some or all of these gamechangers.”