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Global Wealth Management AUM Set To Double by 2025

Wealth management needs will soar, says report, but many current wealth managers won't, commodities were the one bright investment spot last week, and Kestra Private Wealth brings on a $150 million team.

As public health improvements mean the world’s population lives longer, and assuming worldwide wealth and prosperity continue to develop, certain vocations are set to thrive, and that includes retirement planning and asset management, according to a recent report by PricewaterhouseCoopers. The wealth management sector is set to hit $145.4 trillion in assets under management by 2025, up from $84.9 trillion in 2016. “The burgeoning wealth of high-net-worth individuals and the mass affluent, as well as a pronounced shift to defined contribution retirement saving, are propelling huge growth in the asset and wealth management industry,” PwC said in a statement. Despite predicted gains, PwC’s global asset and wealth management leader, Olwyn Alexander, warns current wealth managers there is a chance they won’t be the ones to take advantage of the growth. “Asset managers can take advantage of this massive global growth opportunity if they’re innovative. But it’s to do or die. Things will look very different in five to ten years’ time and we expect to see fewer firms managing far more assets significantly more cheaply.”

Commodities Had a Good Week

Examining the returns of exchange-traded products, commodities popped a full 1 percent in total return for the five days last week. That makes them an outlier during a week when most asset classes fell, according to The Capital Spectator. Equity markets were up 0.2 percent over that time frame, while all other asset classes—based on exchange-traded products—saw declines. Still, equities win the one-year performance review, with a total return of 23.9 percent, according to Vanguard’s Total Stock Market Index. The worst one-year performing asset class at this point? Inflation-indexed Treasuries.

Kestra Adds White Cap Wealth Management

Kestra Financial CEO James Poer

Kestra Private Wealth Services has announced a deal to acquire White Cap Wealth Management. Provo, Utah-based White Cap boasts approximately $150 million in AUM and specializes in individual investment management, executive stock compensation consultation, and 401(k) design and implementation for plan sponsors. “When it came time to break free from the wirehouse environment, we wanted to partner with a firm that gave us all the tools, support, and guidance needed so we could focus on growing our practice. Kestra PWS really delivered on that front,” White Cap President David Johnston said in a statement. “We chose Kestra PWS because of the accessibility of the team, the boutique-like atmosphere it cultivates and the proven track record of empowering advisors to take control of their own destiny.”

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