b'Mercia Asset Management PLC93Annual Report and Accounts 20213. Segmental reportingThe Groups revenue and profits are derived from its principal activity within the United Kingdom.IFRS 8 Operating Segments defines operating segments as those activities of an entity about which separate financial information is available and which are evaluated by the Chief Operating Decision Maker to assess performance and determine the allocation of resources. The Chief Operating Decision Maker has been identified as the Board of Directors. The Directors are of the opinion that under IFRS 8 the Group has only one operating segment, being proactive, specialist asset management, because the results of the Group are monitored on a Group-wide basis. The Board of Directors assess the performance of the operating segment using financial information which is measured and presented in a consistent manner.An analysis of the Groups revenue is as follows:Year endedYear ended 31 March31 March 20212020 000 000Fund management fees 13,143 8,861Initial management fees 1,447 1,286Portfolio directors fees 3,086 2,380VCTs share offer fees 1,318Strategic report GovernancePerformance fees 4,224 Other revenue 192 22023,410 12,7474. Fair value movements in investmentsYear ended Year ended31 March 31 March2021 2020 Financial statements000 000Net fair value movements in investments (note 19) 10,088 (15,844)5. Employees and DirectorsThe average monthly number of persons (including Executive and Non-executive Directors) employed by the Group during theyear was:Year ended Year ended31 March 31 March2021 2020number NumberAsset management 70 63Central functions 29 2899 91Central functions comprise senior management (including Executive and Non-executive Directors), finance, compliance, legal, administration, people and talent and marketing.The aggregate employee benefit expense (including Executive and Non-executive Directors) was:Year ended Year ended31 March 31 March2021 2020000 000Wages and salaries 9,143 7,442Social security costs 912 768Other pension costs (note 29) 648 57010,703 8,780The Directors represent the key management personnel. Detailed disclosures in respect of Directors remuneration are included in the audited section of the Remuneration Report on page 70, which forms part of these financial statements.'