Industry Analysis & Industry Trends
The Fund Management Activities industry in the United Kingdom is the second largest in the world and the largest in Europe. Funds under management (FUM) by the industry are expected to reach £4.7 trillion in 2013-14. Industry revenue comes predominantly from management fees, which are normally calculated as a percentage of FUM. The industry is expected to grow at a compound annual rate of 2.2% over the five years through 2013-14 to reach £13.3 billion... purchase to read more
Industry Report - Industry Investment Chapter
The Fund Management Activities industry has a low level of capital intensity. In 2013-14, for every £1 spent on capital, industry operators are expected to spend £16.80 on wages.
The industry has low capital requirements but is relatively labour intensive, with wages accounting for approximately 33.6% of revenue in 2013-14. Labour expenses include the salaries and bonuses paid to staff. The average industry wage is high, reflecting the skilled nature of work and the high demand for successful fund managers by industry players.
There are economies of scales in the industry, meaning an increase in the value of assets under management, and so management fees, may not require a comparable increase in staff numbers... purchase to read more