Mutual Fund Management Industry Overview

Excerpt from Mutual Fund Management Report

Companies in this industry manage the portfolio assets of others on a fee or commission basis. Major companies include American Funds Investments, BlackRock, Fidelity Investments, Franklin Templeton, Invesco, and Vanguard (all based in the US), as well as Investec (South Africa), Old Mutual (UK), and Schroders (UK).

Competitive Landscape

Demand is affected by the growth of retirement capital and returns on alternative investments. 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 hold more than half 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.