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 Fidelity Investments, Vanguard, and BlackRock Funds (all based in the US), as well as Investec (South Africa), Amundi (France), and Schroders (UK).

Mutual funds worldwide have about $55 trillion in assets under management. The US has the largest mutual fund market in the world, accounting for nearly half (47%) of assets. Europe accounts for about 35% 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 9,600 funds with $17.7 trillion in assets under management at year-end 2018, down slightly from 2017, according to the Investment Company Institute.

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 concentrated: the 10 largest firms manage 60% of total assets, according to the Investment Company Institute.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major services include the initial formation of a mutual fund, sales and redemption of shares, investment advisory services, and day-to-day management.

Each mutual fund is a separate open-end investment company, with ...