ASSET MANAGEMENT MOVES INTO THE SPOTLIGHT

Figure 13 proportIoN of swfs INvestINg IN eACh Asset CLAss

Figure 14 preferred method of exposUre to INfrAstrUCtUre of swfs INvestINg IN the Asset CLAss

82%

Public equities

86%

34%

Debt instruments

51%

50%

Private equity

57%

Infrastructure

16%

54%

Real estate

Direct investment Both direct and fund investments

Fund investments

31%

Hedge funds

Sources:Preqin

0%

20%

40%

60%

80%

100%

2013

2012

2011

2010

Sources:PwCanalysisbasedonPreqindata

Source: Preqin

Source: Preqin

Figure 15 gLobAL swf Assets IN $ tN

As resource rich governments and rising economies continue to accumulate wealth, we will see new SWFs being setup (especially in SAAAME countries) and a further increase in AuM in existing funds. AuM in SWFs are estimated to reach $8.9 trillion globally within the next five years, (i.e. a 7% com- pound annual growth rate). 23 Deepening the understanding of the different types of SWFs as well as their diverse needs, objectives, cultures and risk appetites will help asset managers to secure these clients for the long term. Those asset managers who can demonstrate operational strength in risk management, compliance and reporting in addition to good investment performance will be more attractive to SWFs.

10 1 2 3 4 5 6 7 8 9

= Compound Annual Growth Rate

8.9

Sources:Pensionand InvestmentMagazine

5.2

3.3

1.4

32.5%

9.8%

7.0%

0

2004

2007

2012

2020

Sources:PwCanalysisbasedonSWF Institutedata

29

Source: PwC analysis based on SWF Institute data

23 PwC, "Asset Management 2020", 2014