For immediate release: Tuesday 4 July 2006 

UK ASSET MANAGEMENT INDUSTRY TOPS £3 TRILLION
IMA’s Fourth Annual Industry Survey

The Investment Management Association has today published the most comprehensive survey of the UK asset management industry. Now in its fourth year the Asset Management Survey covers IMA’s 137 members.

This year sees UK assets under management rise from £2.16 trillion to £2.8 trillion. 20% of these assets are managed on behalf of overseas clients, highlighting the importance of the UK as an international financial centre.  Taking account of hedge funds, private equity and other assets managed by non IMA members, the IMA estimates that more than £3 trillion of assets are now managed in the UK.

Retail products represent £530 billion, of which UK authorised unit trusts and OEICs represented around 65%.  The IMA estimates that some £200 billion are assets managed in the UK but domiciled offshore.

Other key findings of the survey include:

• Institutional assets represent 80% of the total, with corporate pension funds/ insurance accounting for 70%. Although liability led strategies currently represent 5%, a quarter of firms expect this to be the first or second fastest growing area in three years
• Weighted average industry gross revenues as a percentage of total assets managed in the UK are some 28 basis points, or around £8 billion
• Employment within the UK asset management industry is approaching 25,000 excluding employees of outsourcing providers
• Although a sharp increase in the position of equities can be seen as a proportion of total assets, matched samples suggest the shift to bonds in institutional portfolios is continuing
• Excluding in-house occupational pension firms, two-thirds of assets managed by respondents are in specialist/single asset mandates.

Richard Saunders, Chief Executive of the IMA, commented:

“With assets under management growing 30% over the last eighteen months, our survey shows the strength of the UK asset management industry. At £3 trillion assets under management, the UK is one of the world’s major centres for this industry.  The amount of money being managed in the UK on behalf of overseas clients is also considerable, emphasising the UK’s place as a key financial centre.”

A copy of the Asset Management Survey, July 2006, is attached.

-Ends-

Notes to editors:
1. Data collected as at December 2005.

For further information, please contact:
Helen Stephenson, Communications Officer, IMA 020 7831 0898

Out of hours contact:
Mona Patel, Head of Communications, IMA  07834 089332