For immediate release: Monday 14th April 2003

RECORD VOLUME OF FUNDS UNDER MANAGEMENT CONFIRMS INDUSTRY’S IMPORTANCE TO UK

Assets managed in the UK amounted to a record estimated £1,934 billion at end June 2002, outstripping stock market growth by 50 per cent since 1997, an Investment Management Association (IMA) survey says. IMA member firms managed an additional £3,500 billion of assets outside the UK, also the highest recorded figure.

The Fund Management Survey was based on responses from 55 member firms, accounting for 90 per cent of assets managed in the UK. It maps out in detail the asset management industry’s ownership, asset allocation, types of client mandate and methods of charging.

Among the highlights of the survey:

• The Industry’s top five groups accounted for 29 per cent of assets under management in the UK, while nearly half of the firms in the industry managed £20 billion or less.
• Insurance groups accounted for 34 per cent of UK assets under management; stand alone investment managers for 24 per cent; retail banks for 21 per cent; and investment banks for 15 per cent.  In global terms, however, investment banks were the largest grouping
• Two thirds of assets under management were accounted for by pension and insurance funds, confirming the predominance of institutional business in the UK.
• Nearly 80 per cent of funds were managed under contracts requiring index tracking or a close approximation of it.
• Equities accounted for 54 per cent of assets under management and bonds 24 per cent.
• £900bn is managed on behalf of overseas institutional clients.

Over half of those responding to questions about soft commissions said they did not participate in such arrangements. Clients, according to the survey, appear to be less interested in regular feedback and analysis of transaction costs than asset managers themselves.

Richard Saunders, Chief Executive of the IMA, said:

“This survey confirms the strategic importance of the asset management industry to the UK, highlighting the extent to which international asset management firms choose to manage funds in the UK. This underlines the critical need to ensure that the UK remains competitive as a centre of excellence in asset management.”

ENDS

Attachment 1 - IMA Survey

Attachment 2 - Appendix I

Attachment 3 - Appendix II

Attachment 4 - Appendix III

Attachment 5 - Appendix IV

For further information, please contact:

Gordon Midgley, Director of Research, IMA, 020 7831 0898

Dorian Carrell, Head of Statistics, IMA, 020 7831 0898

Helen Stephenson, Communications Officer, IMA, 020 7831 0898

Notes to Editors:

The IMA is the trade body representing the UK asset management industry.  IMA Members include independent fund managers, the asset management arms of banks, life insurers and investment banks, and occupational pension scheme managers.  They are responsible for the management of over £2 trillion of funds (based in the UK, Europe and elsewhere), including authorised investment funds, institutional funds (eg pensions and life funds), private client accounts and a wide range of pooled investment vehicles. 

65 Kingsway London WC2B 6TD 

Tel: +44 (0) 20 7831 0898 Fax:+44 (0) 20 7831 9975 

www.investmentuk.org 

Investment Management Association is a company limited by guarantee registered in England and Wales Registered number 4343737.  Registered office as above.