Diversified portfolio: Improving market conditions will moderately push industry revenue upward

Despite recent volatility in global capital markets and an investor push toward passively managed funds, the performance of the Portfolio Management industry is expected to improve strongly over the five years to 2016. Industry operators generate revenue from fees, which are largely calculated as a specific share of total assets under management (AUM). By 2012, industry revenue passed prerecessionary levels. Industry revenue is forecast to grow over the five years to 2021. Improving market conditions after poor global equity returns in 2016 will push up stock returns and bond yields, causing AUM to grow over the five-year period. Demographic trends are also expected to boost demand for industry services...read more.

Industry Statistics & Market Size
Annual Growth 11-16
Forecast Growth 16-21
Market Share of Companies
There are no companies with a dominant market share in this industry
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Industry Threats & Opportunities

  • Improving market conditions will push up stock returns and bond yields
  • The industry has been severely impacted by changes in investor preferences
  • The trend toward low-fee investment products is anticipated to continue
  • Industry Report - Industry SWOT Analysis Chapter

    The Portfolio Management industry is in the mature stage of its economic life cycle. This stage is characterized by increasing merger and acquisition activity and the wholehearted market acceptance of industry products and services. Industry value added (IVA), which measures an industry's contribution to the overall economy, is expected to increase at an annualized rate of 3.4% over the 10 years to 2021. In contrast, US GDP is projected to grow at an annualized rate of 2.0% during the same period. While IVA growth above GDP can indicate a growing industry, IVA growth is slowing. Additionally, the growth of new companies is forecast to slow over the outlook period.The industry is expected to undergo significant changes over the cycle. Inv...purchase to read more.

    Additional Insights for the Portfolio Management Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Portfolio Management Industry are

  • Having an extensive distribution/collection network
  • Highly trained workforce
  • Having a high prior success rate
  • IBISWorld analysts also discuss how external factors such as S&P 500 and Per capita disposable income in the Portfolio Management industry impact industry performance..

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    What is the Portfolio Management Industry?

    The industry comprises firms that actively manage assets for clients. Portfolio managers have the authority to make investment decisions and generate revenue through fees that are based on service and portfolio performance. Industry operators manage assets for investment vehicles such as mutual funds, hedge funds and variable insurance products.

    Industry Products
  • Large-cap equity, government fixed income and structured products
  • Equity specialties and fixed income products
  • ETFs and passively-managed products
  • Alternatives
  • Solutions Products and Other (target date products and LDIs)
  • Industry Activities
  • Large cap equity asset management
  • Fixed-income asset management
  • Equity specialties asset management
  • Alternatives asset management
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • S&P 500
  • Per capita disposable income
  • Yield on 10-year Treasury note
  • Prime rate

  • Current Performance
  • Revenue trends
  • Changing preferences
  • Rising competition
  • Chart: Revenue Growth

  • Industry Outlook
  • Continuing trends
  • Settling competition
  • Moving forward
  • Table: Portfolio Management Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Portfolio Management Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Financial Planning & Advice
  • Retirement & Pension Plans
  • Open-End Investment Funds
  • Private Equity, Hedge Funds & Investment Vehicles
  • Consumers

  • Key Selling Industries
  • Custody, Asset & Securities Services
  • Securities Brokering

  • Products & Services
  • Large-cap equity, government fixed income and structured products
  • Equity specialties and fixed income products
  • ETFs and passively-managed products
  • Solutions Products and Other (target date products and LDIs)
  • Alternatives
  • Chart: Portfolio Management Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Retail and high-net-worth clients
  • Equity institutional investors
  • Fixed income institutional investors
  • Multi-asset institutional investors
  • Alternatives institutional investors
  • Chart: Major Market Segmentation for the Portfolio Management Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Portfolio Management

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Portfolio Management 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 Portfolio Management 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 Portfolio Management Industry
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)
  • Per capita disposable income (2007-2021)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Active Management
  • A portfolio management strategy where the manager makes specific investments with the goal of outperforming an investment benchmark index.
  • Assets Under Management (Aum)
  • The assets (e.g. equities, fixed income, real estate and alternative assets) managed on behalf of clients.
  • Exchange-Traded Fund
  • An investment fund traded on stock exchanges that holds assets (e.g. stocks, commodities or bonds) and trades close to its net asset value over the course of the trading day.
  • Hedge Fund
  • An investment fund, usually only open to customers that meet specific wealth characteristics, that undertakes a range of investment and trading activities.
  • Passive Management
  • A financial strategy in which an investor or a fund manager invests in accordance with a pre-determined strategy that doesn't entail any forecasting.
  • Why buy this report?

    IBISWorld’s industry research report on Portfolio Management provides up-to-date sales and market data, allowing you to identify the product and customer segments driving revenue growth. The report identifies the leading companies in the industry, and offers strategic analysis of the key factors influencing the market. Our data forecasts are accompanied by full analysis to illustrate how the market is responding to dominant and emerging trends.

    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
    • Quickly build competitive intelligence
    This report on Portfolio Management:
    • 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 of 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 Portfolio Management 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 Portfolio Management, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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