London, 26 September 2010

The old economic order is shifting. As the global economy recovers some emerging markets are likely to grow faster than traditional economic powers, according to PricewaterhouseCoopers (PwC). At the industry level, these shifts are even more apparent with accelerating capital flows, fundamental demographic changes, and the rise of state capitalism reshaping the world map for many sectors.

PwC's Macro Consulting team has developed a tool to map future clusters across the world. This report uses this tool to highlight the geographical locations that will host the largest clusters in five industries:

• pharmaceuticals

• automobile assembly

• asset management

• filmed entertainment and

• tertiary education

“See the future: Top industry clusters in 2040 revealed”

PwC has predicted that Singapore will overtake London and Boston to become the world’s second-largest asset management hub after New York within 15 years.

Assets domiciled in Singapore would increase from $50bn this year to more than $250bn in 2040, it projects. PwC blamed tougher regulation in Europe for dissuading companies from further expanding. "The European Union’s Alternative Investment Fund Managers directive has raised the spectre of increased regulatory burdens for firms based in London and other EU centres," the report says.
PwC cited the move of a number of hedge fund managers, which manage approximately $50bn in assets, to Geneva to support its conclusion.

"In asset management we expect the existing large clusters in New York, London and Boston to be joined by Singapore, which may become the leading cluster in the Asian region. Tighter regulation and higher taxes are currently working against clusters in the United States and Europe but the key factor will be the increase in public and private capital available in Asia – which will fuel growth in asset management in the region".

PwC said London’s gradual growth would continue over the next 30 years as a result of the incoming UCITS directive, which requires fund managers to be based in Europe.

Ends --

The expected top locations in 2025 and 2040 are disclosed for each of these sectors highlighting key trends for the industry and how the new economic order will influence future geographical winners.

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See The Future: PwC

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