Stock option: Rising interest rates may hinder industry revenue growth
Despite investors pushing toward passively managed funds with lower fees, the Portfolio Management industry has experienced fluctuating revenue figures over the five years to 2019. Financial markets play an integral role in AUM growth and, consequently, base and performance fees earned by managers. Market indices, such as the S&P 500, demonstrated strong growth over the past five years. Growth in financial markets was supported by key macroeconomic variables rising during the current period, including employment and disposable income levels. These trends free-up assets that enable industry companies to invest. Overall, industry revenue has increased over the past five years. Over the five years to 2024, industry revenue is forecast to continue to expand. Continual macroeconomic growth is expected to give way to sustained strength in financial markets during the outlook period.
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.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.
Table of Contents
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Blackrock Inc.
- Fidelity Investments Inc.
- State Street Corporation
Methodology
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