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 typically calculated as a percentage of FUM. Revenue is expected to grow at a compound annual rate of 7.4% over the five years through 2015-16, reaching £18.2 billion. Although this suggests that the industry is expected to grow at a robust pace, growth has also been boosted by the significant declines registered during the financial crisis... purchase to read more
Industry Report - Starting a New Business Chapter
The industry has medium 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 in building 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 more easily.
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