Industry Analysis & Industry Trends
The Fund Management Activities industry in the United Kingdom is the second-largest in the world. Funds under management (FUM) by the industry are expected to exceed £5.0 trillion in 2012. Revenue in this industry comes predominantly from management fees, which are normally calculated as a percentage of FUM. Over the five years through 2011-12, industry FUM are expected to grow an average 2.6% per year. Over this same period, real industry revenue is expected to decrease an average 0.9% per year.
The industry experienced difficult conditions and swings in revenue over recent years. In the three years through 2006-07, industry revenue benefited from strongly performing global stock markets and rising assets prices producing appreciation in the value of FUM... purchase to read more
Industry Report - Starting a New Business Chapter
This industry has relatively low barriers to entry. Initial capital costs are moderate, although firms also need to establish a brand, reputation and develop a team of skilled staff. These factors are important to build a solid asset base to maximise returns and build investor confidence. Fund managers that have already established a reputation for investment performance may establish new firms.
Having sufficient assets under management to attract institutional investment can be a significant barrier to growth for smaller funds. Funds may also need several years of performance history to attract institutional investment. Institutions normally undertake a review of funds before deciding to invest in the fund... purchase to read more