ASSET MANAGEMENT MOVES INTO THE SPOTLIGHT

Figure 8 peNsIoN fUNd Assets IN $ tN

70

= CAGR

50 60 40 20 10 30

56.5

1.1

6.5 5.0

6.6%

2.9%

8.8%

13.8

33.9

8.5 3.2 2.4 0.6

9.9% 9.5% 6.2% 5.7%

11.3%

1.5 0.4

29.4

7.1 2.1

0.8 0.2

4.7 1.3 21.3

30.1

Figure 9 totAL Assets ANd ALLoCAtIoN of Assets heLd by eUro AreA peNsIoN fUNds ANd INsUrers

19.3

18.3

14.3

0

2004

2007

2012

2020

tn 9

North America

Europe

100% 10% 20% 30% 40% 50% 60% 70% 80% 90%

13%

13%

12%

12%

13%

14%

Middle East and Africa

Latin America

0 1 2 3 4 5 6 7 8

Sources:PwC,MarketResearchCentre,AssetManagement2020–ABraveNewWorld.

18%

22%

23%

24%

Source: PwC, " Asset Management 2020 " , 2014

25%

26%

A window of opportunity has opened for asset managers to connect the supply of pension funds with long-term investment demands. While the pension fund market in the U.S. is very mature, the pension fund systems in Asia and Latin America are still developing. Europe is following America in this area as people are becoming more aware of the need to save for their retirement. According to the European Central Bank, in addition to direct mandates to asset managers, the proportion of euro area pension funds and insurers investing in investment funds has increased steadily from18% to 26% during the past five years. See Figure 9. The growing pie of euro area pension funds and insurers coupled with the increasing share of those investing through investment funds rather than directly equals an opportunity for asset managers.

40%

39%

40%

40%

41%

41%

14%

13%

13%

12%

11%

11%

14%

13%

12%

12%

10%

9%

0%

2008

2009

2010

2011

2012

2013

Currency and deposit

Shares

Debt securities

Other

Total Assets

Investment funds

Sources:PwCanalysisbasedonECBdata

Source: PwC analysis based on ECB data

26