In funds: Industry revenue is expected to grow, supported by improving financial markets

The UK Fund Management Activities industry is the second largest in the world and the largest in Europe. The assets or funds under management (AUM/FUM) by the industry are expected to reach £8.4 trillion in 2018-19. The industry includes independently managed funds as well as those owned by banks, insurance companies and pension funds. Industry operators pool together capital from numerous investors, such as pension funds, insurance firms and retail banks, to collectively purchase securities with the aim of gaining a return on investment. Industry revenue is derived from management fees, which are typically calculated as a percentage of AUM, and performance fees, based on return on invested assets...read more.

Industry Statistics & Market Size
Revenue
£20.5bn
Annual Growth 14-19
6.7%
Forecast Growth 19-24
Profit
Employment
40,198
Businesses
1,168

Industry Threats & Opportunities

  • Fund flows from international investors and pension funds have supported industry growth
  • Introducing automatic enrolment for pensions has benefited the industry
  • Interest rates are anticipated to remain low, supporting industry revenue expansion
  • Industry Report - Industry Products Chapter

    According to the Investment Association, the proportion of third-party assets that were actively managed stood at 75% in 2017, while the remaining 25% were passively managed. An active fund is intended to outperform the market average by choosing stocks that offer higher returns. In contrast, a passive fund is a collective fund that tracks rather than tries to beat the index. Passive funds invest in companies in accordance with the constituents of an index.The range and sophistication of financial products are expected to grow over the next five years. Products that manage risk and volatility in returns better are likely to become more popular. Dem...purchase to read more.

    Additional Insights for the Fund Management Activities Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Fund Management Activities Industry are

  • Having an extensive distribution/collection network
  • Highly trained workforce
  • Having a good reputation
  • IBISWorld analysts also discuss how external factors such as FTSE 100 and year bond rate in the Fund Management Activities industry impact industry performance..

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    What's in this report

    What is the Fund Management Activities Industry?

    This industry includes portfolio and fund management activities provided on a fee or contract basis for individuals and businesses. It covers firms operating and managing assets in the United Kingdom for both domestic and overseas clients.

    Industry Products
  • Equities
  • Fixed-income assets
  • Mixed assets
  • Industry Activities
  • Managing mutual funds
  • Managing pension funds
  • Managing other investment funds
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • FTSE 100
  • year bond rate
  • Demand from pension funding
  • Demand from life insurance
  • Gross national savings rate

  • Current Performance
  • Capital inflows

    and AUM

  • Financial markets

    and assets

  • Concerns
  • Profit and

    market structure

  • Chart: Revenue Growth

  • Industry Outlook
  • Capital inflows
  • Investment returns
  • Other regions

    and assets

  • Industry issues

    and challenges

  • Market structure

    and profit

  • Table: Fund Management Activities Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Fund Management Activities Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Life Insurance
  • General Insurance
  • Pension Funding
  • Consumers

  • Key Selling Industries
  • Accounting & Auditing
  • Banks
  • Investment Banking & Securities Brokerage

  • Products & Services
  • Equities
  • Fixed-income assets
  • Mixed assets
  • Other
  • Chart: Fund Management Activities Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Institutional clients: Pension funds
  • Retail clients
  • Institutional clients: Insurance companies
  • Other institutional clients
  • Chart: Major Market Segmentation for the Fund Management Activities Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Fund Management Activities

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Fund Management Activities Industry

  • Industry Globalization
    BlackRock Investment Management (UK) Ltd, Legal & General Investment Management Ltd, Insight Investment Management (Global) Ltd, Aberdeen Standard Investments Ltd,
  • Table: BlackRock Investment Management (UK) Ltd - financial performance
  • Table: Legal & General Investment Management Ltd - financial performance
  • Table: Insight Investment Management (Global) Ltd - financial performance
  • Table: Aberdeen Standard Investments Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Fund Management Activities Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Fund Management Activities Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Assets Under Management (Aum)
  • The value of the assets a fund management firm manages on behalf of its clients.
  • Institutional Investor
  • These are mainly organisations that pool sums of money and invest them. They also include operating companies that decide to invest in funds.
  • Quantitative Easing
  • The introduction of new money into the money supply by a central bank.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Fund Management Activities market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Fund Management Activities:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Fund Management Activities market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Fund Management Activities, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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