Asset management sector defies turmoil on global equity markets

THE UK asset management industry is weathering the market chaos and will remain a global magnet for fund business provided tax and rule changes do not damage it for no reason, according to the Investment Management Association (IMA).<br /><br />Richard Saunders, the IMA&rsquo;s chief executive, said the association&rsquo;s annual survey shows the industry fell by just 13 per cent in 2008 to &pound;3 trillion in size and assets managed by UK firms on behalf of overseas clients remained static at &pound;1 trillion.<br /><br />He said banking needs &ldquo;radical reform&rdquo; but tax and rule changes in response to &ldquo;what was, in essence, a banking crisis&rdquo; should not adversely impact the asset management industry. UK-based asset managers earned revenues of &pound;9.4bn in 2008, compared to &pound;10.2bn in 2007, he added.