The global asset management industry has, and will continue to change dramatically from what it was five years ago, according to Credit Suisse vice chair Robert Parker.
He estimated that by 2009 it would have grown from the $US57 trillion that it was in 2005 to $US72 trillion.
He put this down to the current trends of greater asset diversification, demand for higher yielding products and the increasing popularity of alternatives.
He went on to say that he did not view inflation as being a specific risk to global equity markets.
“I don’t think we should worry too much about inflation,” he said.
“Yes, inflation is creeping up, but it is very moderate considering where we have come from … Inflation is temporary and will go down.
“Global liquidity is tightening, but very slowly, meaning we won’t have the sort of equity returns we had last year.”
Parker predicted that except for only 2-3 per cent growth in the US, there would be robust development globally.
“Over the next six to 12 months, the big theme will be convergence in equity market returns, not divergence,” he said.
“Asia will outperform other markets towards the end of this year and next year.”
