Markets fund growth: Expected market gains are likely to bring industry opportunity

Open-ended investment companies (OEICs) and unit trusts are both types of collective investment schemes that can constantly adjust their portfolios to maximise returns, given a specific investment remit. The size of the fund depends on demand for fund shares, which are created and cancelled upon purchase and redemption. Therefore, the fund size is proportional to its investment performance. OEICs are priced to reflect the net asset value (assets less liabilities) of their investments and may have multiple share classes. Funds invest in a range of assets, including domestic and global equities, government and corporate fixed-income securities, and a range of more.

Industry Statistics & Market Size
Annual Growth 15-20
Forecast Growth 20-25
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Revenue has grown despite post-referendum uncertainty and US-China trade dispute
  • Industry employment is expected to grow as the number of funds increase
  • Industry investment in preparation for new regulation is expected to squeeze profit margins in the short term
  • Industry Report - Industry Products Chapter

    The industry sells several types of funds that cater to the risk-return profiles and objectives of different investors. The underlying assets of a fund usually guide how it is organised and sold. These assets can be equity based, such as corporate shares, or debt based, such as gilts and bonds. Physical assets may also be included in funds. These will generally consist of cash, gold or property, although no property unit trusts are included in this industry (see IBISWorld report K64.305). Over the past five years, funds that offered greater certainty in terms of cash flow and returns, such as fixed-income funds, became the preferred fund style. However, over the next five years, as financial markets calm, investors' risk appetites are expected to increase. Con...purchase to read more.

    Additional Insights for the Open-Ended Investment Company Activities Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Open-Ended Investment Company Activities Industry are

  • Having an extensive distribution/collection network
  • Recommendation/accreditation from authoritative source
  • Having a high prior success rate (including completed prior contracts)
  • IBISWorld analysts also discuss how external factors such as MSCI World Index and FTSE 100 in the Open-Ended Investment Company Activities industry impact industry performance..

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    What's in this report

    What is the Open-Ended Investment Company Activities Industry?

    Open-ended investment companies (OEICs) are legal entities organised to pool securities or other financial assets on behalf of shareholders or beneficiaries in order to generate financial return through investments. OEICs are authorised by the Financial Conduct Authority under the Open-Ended Investment Companies Regulations 2001 legislation. The industry also includes unit trusts, with the exception of property unit trusts (see IBISWorld report K64.305).

    Industry Products
  • UK equity funds
  • Overseas equity funds
  • Fixed-income funds
  • Mixed-asset funds
  • Targeted absolute return funds
  • Money market funds
  • Industry Activities
  • Pooling securities or other financial assets
  • Packaging financial assets that are sold to investors
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • MSCI World Index
  • FTSE 100
  • Gross national savings rate
  • year bond rate

  • Current Performance
  • Equity market performance
  • Assets under management
  • Annuity and pension reforms
  • Profitability
  • Chart: Revenue Growth

  • Industry Outlook
  • Profit margins
  • Global share
  • Pension benefits
  • Table: Open-Ended Investment Company Activities Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Open-Ended Investment Company Activities Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Life Insurance
  • Pension Funding
  • Investment Banking & Securities Brokerage

  • Key Selling Industries
  • Fund Management Activities

  • Products & Services
  • Overseas equity funds
  • UK equity funds
  • Fixed-income funds
  • Mixed-asset funds
  • Targeted absolute return funds
  • Other
  • Money market funds
  • Chart: Open-Ended Investment Company Activities Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Pension investors
  • Retail investors
  • Other Institutional investors
  • Insurance investors
  • Chart: Major Market Segmentation for the Open-Ended Investment Company Activities Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchasesPurchase costs generally amount to the acquisition of information and research that investment professionals use to make decisions. This is often from third-party specialist providers, such as Bloomberg. In the current year purchase costs are expected to account for 1.8% of industry revenue. RentMarketingMarketing accounts for a very low proportion of industry revenue, estimated at 0.5%. Industry operators generally do not reach out to retail investors. The costs associated with marketing to institutional investors are often internalised in other segments such as rent and purchases. DepreciationUtilitiesOther
  • Chart: Cost Structure Benchmarking – Sector vs Open-Ended Investment Company Activities

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Open-Ended Investment Company Activities 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 Open-Ended Investment Company Activities 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 Open-Ended Investment Company Activities Industry
  • Industry Revenue (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Wages (2011-2025)
  • Total Assets (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Marketing (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • Assets Under Management.
  • Brics
  • Brazil, Russia, India, China and South Africa.
  • Coupon
  • The annual interest payment from a bond starting at its issue date until it matures.
  • Gilts
  • Gilt-edged securities are high-grade bonds issued by private organisations, national and supranational governments.
  • Libor
  • The London Inter-Bank Offered Rate. The benchmark rate at which the UK's largest banks lend to each other on a short-term basis.
  • Net Asset Value
  • OEIC share prices reflect this value, which is derived by subtracting OEIC liabilities from assets.
  • Open-Ended Investment Company (Oeic)
  • An investment company that has a variable share capital. It issues or redeems shares to reflect the cash inflow and outflow of the fund.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Open-Ended Investment Company Activities market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
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    This report on Open-Ended Investment Company Activities:
    • 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 Open-Ended Investment Company Activities 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 Open-Ended Investment Company Activities, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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