Mutual Fund Management Industry Profile

Companies in this industry manage mutual funds and other portfolio assets of others on a fee or commission basis. Major companies include BlackRock Funds, Fidelity Investments, and Vanguard (all based in the US), as well as Amundi (France), Investec (South Africa), and Schroders (UK).

Mutual funds worldwide are expected to reach more than $145 trillion in assets under management by 2025, according to PricewaterhouseCoopers. The US has the largest mutual fund market in the world, accounting for more than half (53%) of assets. Europe accounts for about 30% of mutual fund assets, and Africa and the Asia/Pacific region together about 15%, according to the International Investment Funds Association.

The US mutual fund management industry includes about 43,000 firms with a combined annual revenue of $245 billion.

COMPETITIVE LANDSCAPE

Demand is affected by the global economic conditions, evolving investment preferences, and demographic trends. The profitability of individual companies depends on investment expertise and effective marketing. Large companies have economies of scale in operations and marketing. Small companies can compete effectively by specializing in desirable sectors and by producing higher investment returns. The US mutual fund industry is?fragmented: the 50 largest firms manage more than 50% of total assets.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major services include the financial management consulting and implementation services (about 40%), and personal financial planning and investment management services (about 30%). Mutual funds management firms also offer personal investment management services (more than 25%). Other services ...