Portfolio Management in California
Over the five years to 2017, the Portfolio Management industry in California is expected to grow. Despite volatility in global financial markets in 2015 and 2016 and the rising popularity of low-cost, passively managed funds, industry revenue has overall increased over the past five years. As employment and wages have improved in recent years, per capita disposable income in California has increased, giving retail clients more financial resources to invest with portfolio managers, thus driving assets under management (AUM) upward. At the same time, corporate profit in California has also grown, giving institutional investors more money to invest. In addition to rising per capita disposable income and corporate profit, growth in the S&P 500 has similarly pushed AUM upward. Industry revenue is forecast to continue growing over the five years to 2022, in line with growth at the national level. Growth in per capita disposable income, corporate profit and the S&P 500 will continue to drive AUM upward, leading to increased revenue. At the same time, regulatory changes that require portfolio managers to work in the best interest of clients are expected to encourage more investors to place money with industry operators, thus pushing AUM up even further.
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 in 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.