Valued assets: As equity markets and bond yields rise, industry revenue will increase

Despite investors pushing toward passively managed funds with lower fees, the Portfolio Management industry has grown steadily over the five years to 2018. Financial markets play an integral role in assets under management (AUM) growth, and, consequently, base and performance fees earned by managers. Market indices, like the S&P 500, demonstrated strong growth over the five years to 2018. Growth in financial markets was supported by key macroeconomic variables rising during the period. While industry revenue has increased steadily due to AUM growth during the period, industry profit margins have declined due to pressure on industry expenses ratios as investors preference in investment strategies changes. Industry revenue is forecast to grow over the five years to 2023...purchase to read more.

Industry Statistics & Market Size
Revenue
$274bn
Annual Growth 13-18
2.0%
Forecast Growth 18-23
Profit
Employment
459,448
Businesses
162,774
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Increasing disposable income and solid financial market growth drive industry trends
  • Shifting consumer preferences are driving change in the industry
  • Larger players are expected to continue adjusting to an evolving competitive and regulatory environment
  • 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 2.0% over the 10 years to 2023. Similarly, US GDP is projected to grow at an annualized rate of 2.1% during the same period. IVA growth that is in-line with GDP growth is one of the main characteristics of an industry in the mature stage of its life cycle.The industry is expected to undergo significant changes during 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's in this report

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

  • Industry Outlook
    Continuing trendsSettling competitionMoving 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
  • Alternatives
  • Solutions Products and Other (target date products and LDIs)
  • 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
  • Profit
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Portfolio Management

  • Basis of Competition
    Internal competitionExternal 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
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Per capita disposable income (2009-2023)

  • 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.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Portfolio Management Industry Research Report offers insight into the market at the national level. Our analysis highlights macro trends in the overall sector and the micro trends faced by companies that do business in the Portfolio Management industry. Our five-year outlook forecasts explain how the market is set to change and the product segments that will drive growth.

    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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