Dublin, Sept. 13, 2024 (GLOBE NEWSWIRE) -- The "Fund Management Activities in the UK - Market Size, Industry Analysis, Trends and Forecasts (2024-2029)" report has been added to ResearchAndMarkets.com's offering.
Industry revenue has grown at a CAGR of 0.4 % over the past five years, to reach an estimated £8.5bn in 2024. Fund management activities revenue is forecast to drop at a compound annual rate of 2.6% to £23.8 billion over the five years through 2024-25, when the average profit margin is estimated to reach 20.2%.
Positive growth in both AUM and capital inflows in the years before the pandemic supported steady revenue growth by providing funds with additional capital to invest. While the COVID-19 outbreak shook the economy, financial markets made an impressive recovery in 2021-22, with investor sentiment skyrocketing amid the reopening of the economy and the tech boom. However, UK-based investment funds were hurt by the loss of passporting rights in the EU as, since Brexit, UK financial regulations may differ from those in the EU financial system, raising costs.
Trends and Insights
- The pandemic disrupted fund portfolios.
- The COVID-19 outbreak significantly impacted investment funds, causing stock market values to plummet as economies shut down. UK-based equities struggled to recover, while US tech and pharmaceutical stocks rebounded faster, influencing investor preferences. Equities thrive amid low-interest rates.
- The prolonged low-interest rate environment has boosted corporate earnings and increased equity sales, benefiting the industry. London offers unmatched financial expertise.
- The city's concentration of financial services talent and proximity to institutional investors make it a prime location for fund management activities. Competition drives fee reduction in the industry.
- Fund managers lower or waive fixed fees to attract clients, relying on performance-based fees instead.
- Nervy investors pull funds in uncertain economic conditions A major source of increased asset inflow comes from automatic enrollment in pension funds, driving up pension assets and increasing the amount invested with fund managers.
- AI will be the next frontier in fund management
- AI is being increasingly used by firms seeking organic growth through outperformance. Fund managers are capitalising on alternative data sets and using AI as a source of differentiation for generating alpha, supporting revenue growth in the coming years.
Key Topics Covered:
About this Industry
- Industry Definition
- Main Activities
- Similar Industries
- Additional Resources
Industry at a Glance
Industry Performance
- Executive Summary
- Key External Drivers
- Current Performance
- Industry Outlook
- Industry Life Cycle
Products & Markets
- Supply Chain
- Products & Services
- Major Markets
- Globalisation & Trade
- Business Locations
Competitive Landscape
- Market Share Concentration
- Key Success Factors
- Cost Structure Benchmarks
- Barriers to Entry
Major Companies
- BlackRock Investment Management (UK) Ltd
- Legal & General Investment Management Ltd
- Insight Investment Management (Global) Ltd
Operating Conditions
- Capital Intensity
Key Statistics
- Industry Data
- Annual Change
- Key Ratios
Jargon & Glossary
For more information about this report visit https://www.researchandmarkets.com/r/efe06a
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