Tried and trusted: The industry has performed well in recent years, particularly in 2016-17

Investment trusts are closed-ended funds that raise funds by issuing a set number of shares when they are launched. Funds raised are then invested in a range of stocks and shares in order to generate investment returns and income. Industry firms are involved in managing and administering investment trusts and receive a fee for their services. Therefore, industry revenue is equivalent to the fees earned. Fees are calculated as a percentage of the value of assets under management (AUM).The industry has grown during the past five years. Financial markets improved, supported by quantitative easing activity and loose monetary policy, which contributed to growth...read more.

Industry Statistics & Market Size
Revenue
£1bn
Annual Growth 13-18
9.8%
Forecast Growth 18-23
Profit
Employment
5,122
Businesses
288
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Industry revenue growth has been strong, if somewhat volatile, as fund flows have risen
  • The popularity of Venture Capital Trusts has risen significantly, improving fund flows into the industry
  • The FCA has resisted automatically labelling investment trusts as complex instruments
  • Industry Report - Industry Locations Chapter

    LondonAlthough the structure of investment trusts changed over the past five years, they tend to be set up in and operate from one central location. Because London is one of the major financial centres, it is expected to house 45.3% of establishments that operate in the industry in 2017-18. There are two key reasons for this: it allows operators to be located close to a large number of potential investors, and London is where the most talented managers and analysts are found. The expertise and skill of a manager who operates the trust and makes investment decisions is crucial to the success of the business and the returns it generates for investors...purchase to read more.

    Additional Insights for the Investment Trusts Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Investment Trusts Industry are

  • Highly trained workforce
  • Having a clear market position
  • Having an effective distribution/collection network
  • IBISWorld analysts also discuss how external factors such as FTSE 100 and Demand from pension funding in the Investment Trusts industry impact industry performance..

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    What's in this report

    What is the Investment Trusts Industry?

    Operators in this industry administer UK-domiciled investment trusts. Revenue is defined as the fees charged to investors for this service. Investment trusts are closed-ended funds and are public limited companies, as their shares are traded on stock exchanges. Property investment trusts and listed hedge funds are excluded from the industry.

    Industry Products
  • Venture capital trusts
  • Conventional investment trusts
  • Split-capital trusts
  • Industry Activities
  • Administering investment trusts
  • Managing investment trusts
  • 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
  • Demand from pension funding
  • Household savings ratio
  • year bond rate

  • Current Performance
  • Industry expansion
  • Fund flows improve
  • Growth restrictions
  • Margins widen
  • Chart: Revenue Growth

  • Industry Outlook
  • Investment returns
  • Fund flows rise
  • Referendum influences
  • Table: Investment Trusts Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Investment Trusts Industry Lifecycle vs The Economy

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

  • Key Selling Industries
  • Investment Banking & Securities Brokerage
  • Stock & Commodity Exchanges

  • Products & Services
  • Conventional investment trusts
  • Venture capital trusts
  • Split-capital trusts
  • Chart: Investment Trusts Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Retail investors
  • Institutional investors
  • Other businesses
  • Chart: Major Market Segmentation for the Investment Trusts Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchasesOther expenses
  • Chart: Cost Structure Benchmarking – Sector vs Investment Trusts

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Investment Trusts Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Investment Trusts 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 Investment Trusts Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Total Assets (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Assets Under Management (Aum)
  • A financial term denoting the value of all funds in an investment trust.
  • Gearing
  • A measure of a trust's financial leverage, which shows the extent to which it is funded by lenders.
  • Open-Ended Investment Company (Oeic)
  • An open-ended collective investment formed as a corporation. It is very similar to a unit trust.
  • Split-Capital Trust
  • A trust that issues a number of share classes to satisfy the needs of different investors.
  • Unit Trust
  • An open-ended fund that does not list its shares on a stock market.
  • Venture Capital Trust (Vct)
  • A trust that predominantly invests in unlisted private companies.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Investment Trusts 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:
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    This report on Investment Trusts:
    • 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 Investment Trusts 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 Investment Trusts, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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