Fund Management Activities in the UK - Market Research Report (2014-2029)
London, United Kingdom
Last Updated: June 2024
SIC K66.300Revenue
£8.5bn
Past 5-Year Growth
Profit
£X.Xbn
Employees
4,376
Businesses
112
Wages
£XXX.Xm
Fund Management Activities in the UK industry analysis
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. 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%.
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.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 0.4 % over the past five years, to reach an estimated £8.5bn in 2024.
Trends and Insights
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.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
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.
Biggest companies in the Fund Management Activities in the UK
| Company | Market Share (%)
2025 | Revenue (£m)
2025 |
|---|---|---|
BlackRock Investment Management (UK) Ltd | 2,052.7 | |
Legal & General Investment Management Ltd | 1,901.0 | |
Insight Investment Management (Global) Ltd | 1,254.6 |
To view the market share and analysis for all 7 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Equities, Fixed-income assets and Mixed assets. Equities is the largest segment of the Fund Management Activities in the UK.
Trends and Insights
Equity markets show no sign of faltering in 2024-25
- Equities represent a share of the value of an asset, with the most common form of equity being common stocks.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Life Insurance in the UK
- General Insurance in the UK
- Reinsurance in the UK
- Pension Funding in the UK
International industries
- Portfolio Management in the US
- Funds Management Services in Australia
- Funds Management and Other Investment Services in New Zealand
- Fund Management Activities in Ireland
- Securities Investment in China
Table of Contents
About this industry
Industry definition
This industry includes portfolio and fund management activities provided on a fee or contract basis for individuals and businesses. It covers firms operating and managing assets in the UK for both domestic and overseas clients.
What's included in this industry?
Managing mutual fundsManaging pension fundsManaging other investment fundsCompanies
BlackRock Investment Management (UK) Ltd Legal & General Investment Management LtdInsight Investment Management (Global) LtdPurchase this report to view all 7 major companies in this industry.
Related Terms
ASSETS UNDER MANAGEMENT (AUM)QUANTITATIVE EASINGINSTITUTIONAL INVESTOR GILTIndustry Code
SIC 66.30 - Fund Management Activities in the UK
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst 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...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Equities thrive amid low-interest rates. The prolonged low-interest rate environment has boosted corporate earnings and increased equity sales, benefiting the industry.
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
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 ...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Competition drives fee reduction in the industry. Fund managers lower or waive fixed fees to attract clients, relying on performance-based fees instead.
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
BlackRock dominates fund management with vast assets. Its acquisition of Barclays Global Investors and iShares platform expansion solidified its position as the world's large...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of BlackRock Investment Management (UK) Ltd 's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Legal & General Investment Management Ltd's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Insight Investment Management (Global) Ltd's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 4 additional companies
Detailed analysis
- Description and key data for BlackRock Investment Management (UK) Ltd , and factors influencing its performance in the industry
- Description and key data for Legal & General Investment Management Ltd, and factors influencing its performance in the industry
- Description and key data for Insight Investment Management (Global) Ltd, and factors influencing its performance in the industry
- Description, key data and performance trends for 4 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
MIFID II enhances product governance. This regulation increases compliance costs and expands the scope of products and services subject to regulation, impacting the fund mana...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Purchases remain a small portion of expenses. This trend is expected to continue as the industry focuses on other cost factors.
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Liquidity Ratios (2018-2022)
- Coverage Ratios (2018-2022)
- Leverage Ratios (2018-2022)
- Operating Ratios (2018-2022)
- Assets (2018-2022)
- Liabilities (2018-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the UK include:
- Office for National Statistics
- Office for Budget Responsibility
- Bank of England
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Fund Management Activities in the UK industry in United Kingdom in 2024?
The market size of the Fund Management Activities in the UK industry in United Kingdom is £8.5bn in 2024.
How many businesses are there in the Fund Management Activities in the UK industry in 2024?
There are 112 businesses in the Fund Management Activities in the UK industry in United Kingdom, which has grown at a CAGR of 9.2 % between 2019 and 2024.
Has the Fund Management Activities in the UK industry in United Kingdom grown or declined over the past 5 years?
The market size of the Fund Management Activities in the UK industry in United Kingdom has been growing at a CAGR of 0.4 % between 2019 and 2024.
What is the forecast growth of the Fund Management Activities in the UK industry in United Kingdom over the next 5 years?
Over the next five years, the Fund Management Activities in the UK industry in United Kingdom is expected to grow.
What are the biggest companies in the Fund Management Activities in the UK market in United Kingdom?
The biggest companies operating in the Fund Management Activities market in United Kingdom are BlackRock Investment Management (UK) Ltd , Legal & General Investment Management Ltd and Insight Investment Management (Global) Ltd
What does the Fund Management Activities in the UK in United Kingdom include?
Managing mutual funds and Managing pension funds are part of the Fund Management Activities in the UK industry.
Which companies have the highest market share in the Fund Management Activities in the UK in United Kingdom?
The company holding the most market share in United Kingdom is BlackRock Investment Management (UK) Ltd .
How competitive is the Fund Management Activities in the UK industry in United Kingdom?
The level of competition is high and increasing in the Fund Management Activities in the UK industry in United Kingdom.
