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 £5.8 trillion in 2016-17. 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 5.9% over the five years through 2016-17 to reach £17.7 billion. Financial markets have expanded over the past five years, supported by historically low interest rates and significant quantitative easing activity, supporting revenue and FUM growth. Fund flows from international investors and pension funds also expanded and supported growth... purchase to read more
Industry Report - Industry Key Buyers Chapter
The top four UK fund management firms are expected to manage a combined total of 32.8% of FUM in the industry in 2016-17. This indicates that the industry has a low level of concentration. The 10 largest fund managers account for a combined total of approximately 50% of all FUM. The industry is characterised by a few firms that are large in terms of asset size and a long tail of medium and small firms. This is highlighted by the fact that approximately 78.7% of firms employ fewer than 10 staff.
Concentration in the industry has been rising over the past five years due to acquisition activity among some of the largest players. Par.. purchase to read more