LONDON, Nov. 19, 2024 /PRNewswire/ — As world leaders at COP29 in Baku grapple with the challenge of mobilizing USD 1 trillion annually in climate finance, investment migration has emerged as an innovative financing solution for climate-vulnerable nations. This will be a central focus at the upcoming 18^th Global Citizenship Conference in Singapore next week, where government leaders and investment migration experts will explore how citizenship and residence by investment programs can provide immediate, debt-free climate funding for Small Island Developing States (SIDS).

The Pacific island nation of Nauru last week launched the groundbreaking Nauru Economic and Climate Resilience Citizenship Program — the world’s first citizenship program specifically designed to address climate change challenges, reflecting a new financing model for integrating economic development and climate solutions. It represents an emerging trend, whereby countries access private sector funding for urgent climate adaptation projects by offering residence rights or citizenship in return.

Speaking after the program’s launch at COP29 in Baku, H.E. David Adeang, President of the Republic of Nauru, emphasized the transformative potential of investment migration. “It provides small and vulnerable nations like ours with a powerful mechanism to mitigate sustainability risks and enhance climate resilience. Our citizenship program sets a new standard in this regard, channelling investments directly into projects that safeguard our nation’s future and contribute towards safeguarding key global biodiversity hotspots.”

International investment migration advisory firm Henley & Partners was mandated by the Government of Nauru to design, implement, and promote the program. Speaking at COP29, Dr. Christian H. Kaelin, Chairman of Henley & Partners, highlighted investment migration’s unique advantage. “The programs offer more than economic benefits. They attract global citizens who are committed to environmental sustainability, thereby fostering a network of advocates invested in the future of vulnerable regions.”

More than 400 delegates from over 50 countries are expected to attend the 18^th annual Global Citizenship Conference, which takes place 27–29 November in Singapore. The Hon. Mohamed Nasheed, Secretary-General of the Climate Vulnerable Forum, representing 70 climate-vulnerable nations, will address the conference and underscored the ethical obligation at hand: “Those with wealth and global mobility are uniquely positioned to act, carrying a duty to future generations to protect the planet. The concept of ‘climate justice’ emphasizes this responsibility, as developing nations — many of which contribute the least to emissions — are often the hardest hit by the impacts of climate change.”

To strengthen its advisory capabilities in this rapidly evolving space, Henley & Partners has  appointed Jean Paul Fabri as its Chief Economist. Fabri brings extensive experience in advising governments on economic development and climate resilience. “For wealthy individuals, investing in climate finance is not just an ethical duty; it’s also a significant economic opportunity. The green economy offers promising avenues for impactful investment, from renewable energy and sustainable agriculture to cutting-edge green technologies.”

Read the full press release here.

View original content:https://www.prnewswire.co.uk/news-releases/investment-migration-emerges-as-key-climate-finance-solution-at-cop29-302307776.html

• Survey suggests strong interest in exchange-traded equity options from both current retail European derivatives investors and non-derivatives investors
• European retail investors’ primary motivations in options trading include capital protection and hedging
• Investors overall said they want more dependable financial and options education
• As part of Cboe’s ongoing efforts to unlock greater retail participation in options, The Options Institute – Cboe’s education arm – plans to expand its presence into Europe in early 2025

AMSTERDAM, CHICAGO and LONDON, Nov. 19, 2024 /PRNewswire/ — Cboe Global Markets, Inc. (Cboe: CBOE), the world’s leading derivatives and securities exchange network, today announced the results of its inaugural survey of European retail investors, conducted jointly by Cboe Europe Derivatives (CEDX), Cboe’s pan-European equity derivatives marketplace, and The Options Institute, Cboe’s education arm.

Overall, the survey reveals a strong interest among European retail investors in utilising exchange-traded options for risk management along with a clear need for education, highlighting an opportunity for the industry to address this demand. CEDX has been working with The Options Institute on ways to bring more awareness of financial markets and derivatives products to the European retail investor community and together plan to offer a comprehensive suite of educational resources in Europe from early 2025.

The survey aimed to gain insights into current retail investing preferences in Europe, attitudes towards options products and levels of interest in educational resources, to help inform The Options Institute’s delivery of services in the region and empower a new generation of investors. Conducted amid ongoing efforts by European policymakers to encourage more retail investment in the region’s capital markets, the survey results clearly indicate that exchange-traded equity options can play an important role in attracting greater retail participation.  

Survey participants were segmented into three categories: current derivatives users; participants interested in derivatives but who do not currently trade them (derivatives prospects) and participants that do not have a desire to trade derivatives. Key findings of the survey include:

Derivatives Users:

• 62% are interested in trading options contracts with stocks/shares as the underlying;
• 61% said they would take an advanced course to learn more about options;   
• 47% said that capital protection is their top strategy for options, followed by hedging (35%) and risk reversals (33%);
• 41% said they would seek education from exchanges.

Derivatives Prospects:

• 54% of those aware of options are interested in trading them with stocks/shares as the underlying, though 66% said that they would need more basic financial education before taking that interest any further;
• 64% said they wish they had more dependable sources of education around investing;
• 39% said they would seek education from exchanges;
• 61% said that understanding options trading strategies is the options topic they are most interested in learning about, followed by risk and portfolio management (53%) and options basics (45%).

Launched in 2021, CEDX is a pan-European derivatives marketplace and offers equity index derivatives and more than 320 equity options on leading companies from 14 European countries. CEDX’s mission is to grow European derivatives markets through a modern, efficient and pan-European ecosystem that lowers barriers to entry for institutional and retail investors. Earlier this year, Interactive Brokers joined the exchange as a participant and now provides its clients with access to CEDX’s range of offerings, representing a significant milestone on its journey to improve the ability of individual and institutional investors to access European derivatives, particularly options.

Iouri Saroukhanov, Head of European Derivatives, Cboe Europe, said: “Cboe has witnessed firsthand the growing influence of retail investors, especially in US options, and these survey results demonstrate European markets are on the cusp of transformation by this community if the significant demand that exists for exchange-traded options can be effectively unlocked. CEDX has been striving to lower traditional barriers to entry by creating a more efficient, simpler, and lower cost pan-European derivatives exchange. However, more needs to be done to cultivate an investing culture among European retail investors and provide the necessary resources for them to start trading. Therefore, we are thrilled that The Options Institute will offer educational courses to European retail investors starting early next year, helping to address the limited access these investors have had to direct options education compared to other regions.”

Alexandra Szakats, Head of The Options Institute at Cboe, said: “Access to meaningful and digestible education has played a pivotal role in the growth of options adoption in the US, particularly among retail investors. This survey demonstrates a tremendous opportunity for similar growth in European markets with Cboe being well-positioned to provide a wide set of educational resources that allow retail investors to make more informed decisions. The Options Institute is excited to expand into Europe, building upon its decades of worthwhile educational efforts through an array of content and resources. The insights from the survey and subsequent focus group discussions will inform our planned activities in the European market, helping retail investors better understand options and the utility they can provide to their portfolios.”

The Options Institute has been providing best-in-class investor education on the responsible use of options and trading strategies in the US for more than 35 years. The Options Institute will look to build upon its efforts in the US and will offer derivatives and financial education through on-line courses, on-demand offerings and an options knowledge center to European investors. Courses often feature speakers from The Options Institute’s Adjunct Faculty Program. Programming is available in English and Spanish with Dutch and German resources expected to launch in early 2025.

The European retail investor survey, and follow-up focus group discussions, were conducted between June and August of 2024. The participants included 5,058 retail traders across France, Germany, the Netherlands, Spain and the United Kingdom. More details on the survey and the results can be found here.

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For additional information, please contact the CEDX sales team or The Options Institute.

About Cboe Global Markets, Inc.

Cboe Global Markets (Cboe: CBOE), the world’s leading derivatives and securities exchange network, delivers cutting-edge trading, clearing and investment solutions to people around the world. Cboe provides trading solutions and products in multiple asset classes, including equities, derivatives and FX, across North America, Europe and Asia Pacific. Above all, we are committed to building a trusted, inclusive global marketplace that enables people to pursue a sustainable financial future. To learn more about the Exchange for the World Stage, visit www.cboe.com.

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• Almost three-fourths (73%) of asset and wealth management (AWM) organisations say AI is seen as the most transformational technology over the next 2-3 years
• 81% are contemplating strategic partnerships, consolidations, or mergers and acquisitions (M&A) to enhance technological capabilities and build an ‘extended tech ecosystem’
• Global assets under management (AUM) projected by PwC to hit US$171 trillion by 2028 at a 5.9% compound annual growth rate (CAGR), with alternatives to grow quicker – at 6.7% CAGR, to reach $27.6 trillion by 2028
• AWM organisations look to tokenisation to democratise finance: PwC expects tokenised investment funds to surge to over $317 billion in 2028, at a 51% CAGR
• Skills in high demand: 73% of asset managers considering M&A see access to skilled expertise as the number one driver of deal-making over next 2-3 years, yet 30% say they lack relevant skills and talent

LONDON, Nov. 19, 2024 /PRNewswire/ — Four-fifths (80%) of asset and wealth management (AWM) organisations say disruptive technologies such as AI will fuel revenue growth, with those moving quickly to adopt ‘tech-as-a-service’ potentially seeing a 12% boost to revenues by 2028, according to PwC analysis.

PwC’s 2024 Asset & Wealth Management Report, released today, surveyed 264 asset managers and 257 institutional investors from across 28 countries and territories, and also finds that four-fifths (81%) are contemplating strategic partnerships, consolidations, or mergers and acquisitions in order to enhance technological capabilities and build an ‘extended tech ecosystem’ to innovate, expand into new markets, and democratise access to investment products ahead of a great wealth transfer.

The report also finds that global AUM held by AWM organisations around the world is projected by PwC to hit US$171 trillion by 2028, with tokenised investment funds to surge at a CAGR of 51%.

Albertha Charles, Global Asset & Wealth Management Leader, PwC UK, said:

“Disruptive technologies such as AI are transforming the asset and wealth management industry and fuelling revenue growth, productivity and efficiency. Market players are subsequently looking to strategic consolidation and partnerships to build tech-driven ecosystems, break down silos in data management, and transform their service offerings ahead of a great wealth transfer that will see mass affluents and younger audiences play a greater role in shaping service demands. To emerge as leaders in this new digital-first market, AWM organisations must invest in their technological transformation while also ensuring they are re-skilling and upskilling their workforces with the necessary digital capabilities to remain competitive and innovative.”

Disruptive technologies will fuel AWM revenue growth

AWM organisations broadly see disruptive technologies such as AI as transformational, with almost three-fourths (73%) viewing it as the most transformative technology over the next two to three years. 80% say such technologies will fuel revenue growth, with 84% noting it will improve operational efficiency and 72% noting it will improve employee productivity. The provision of tech-as-a-service¹ by AMW organisations could deliver a 12% boost to revenues by 2028, according to PwC analysis.

While such technologies represent an opportunity to turbo-charge operations and access new markets, more than three-fifths (68%) say that they allocate less than one-sixth of their capital to innovative and potentially transformative technologies, with more than half (59%) of institutional investors noting such technologies could reduce their reliance on asset managers. This comes as only 20% of AWM organisations are currently using disruptive tech to enhance personalised investment advisory.

Global AUM to hit US$171 trillion by 2028, with alternatives leading the way

Under baseline projections, PwC research estimates global assets under management (AUM) held by asset and wealth managers (AWMs) is expected to hit US$171 trillion by 2028, reflecting a 5.9% CAGR, and up from 5% last year. Alternatives are projected to grow much faster – at a CAGR of 6.7%, to reach $27.6 trillion by 2028.

As AWM organisations look to new growth opportunities, tokenisation stands out, with tokenised investment funds expected by PwC to increase from $40 billion to over $317 billion in 2028, representing a 51% CAGR. Tokenisation, or fractional ownership,² could expand market offerings by democratising finance and lowering premiums, with tokenisation planned to be offered notably by asset managers in private equity (53%), equity (46%), and hedge funds (44%). While alternatives represent a significant growth opportunity, less than one-fifth (18%) currently offer emerging asset classes such as digital assets as part of their offering – even as eight in ten that do offer such assets report a rise in inflows.

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AWM looks to consolidation and tech ecosystems as talent remains top priority

Against this backdrop, 30% of asset managers say they are currently facing a lack of relevant skills and talent, while 73% of AWM organisations who are exploring M&A see access to skilled expertise as the number one driver for deal-making over the next 2-3 years. As AWM organisations contend with digital disruption and expanding their talent and product pools, more than four-fifths (81%) are contemplating strategic partnerships, consolidations, or mergers and acquisitions to build an extended tech ecosystem to drive growth.

Albertha Charles, Global Asset & Wealth Management Leader, PwC UK, concludes:

“The report highlights an urgent need for AWM organisations to rethink investment strategies. Long-term viability depends on a radical, fundamental and continuous reinvention of how organisations create and deliver value. Strategic partnerships and consolidation will play a vital role in building tech ecosystems that will facilitate a greater transfer of ideas and expertise. Smaller players will be able to bring their systems up to speed quickly and cost-effectively, while allowing larger players to access talent and insight pivotal to growth, particularly as new and emerging technologies such as AI transform the investment management landscape.”

About PwC 2024 Asset & Wealth Management Report

PwC’s 2024 Asset & Wealth Management Report is an international survey of 264 asset managers and 257 institutional investors from across 28 countries and territories. Respondents covered a broad spectrum of AUM size, with more than half boasting assets of over US$10 billion. You can read the full report at www.pwc.com

About PwC

At PwC, our purpose is to build trust in society and solve important problems. We’re a network of firms in 149 countries with more than 370,000 people who are committed to delivering quality in assurance, advisory and tax services. Find out more and tell us what matters to you by visiting us at www.pwc.com.

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¹ Tech-as-a-service includes ‘platforms for product distribution, portfolio management, risk and data analytics, and more.’ More broadly it is a model that allows third parties to offer financial services by using the technology and regulatory framework of traditional financial institutions.
² Tokenisation is the digitisation of an asset where each unit or token represents ownership of part of that asset. It converts rights to an asset into a form of digital token facilitated by a blockchain platform.

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