Industry Analysis & Industry Trends
The UK Fund Management Activities industry is the second largest in the world and the largest in Europe. The funds under management (FUM) by the industry are expected to reach £5.9 trillion in 2015-16. Industry revenue comes predominantly from management fees, which are normally calculated as a percentage of FUM. Revenue is expected to grow at a compound annual rate of 7.8% over the five years through 2015-16, reaching £18.5 billion. Although this suggests that the industry is expected to grow at a robust pace, growth has been boosted by the significant declines registered during the financial crisis... purchase to read more
Industry Report - Industry Products Chapter
According to the Investment Management Association, the proportion of third party assets that were actively managed stood at 65% in 2013, while the remaining 35% 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... purchase to read more