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).
Richard Saunders, the IMA’s chief executive, said the association’s annual survey shows the industry fell by just 13 per cent in 2008 to £3 trillion in size and assets managed by UK firms on behalf of overseas clients remained static at £1 trillion.
He said banking needs “radical reform” but tax and rule changes in response to “what was, in essence, a banking crisis” should not adversely impact the asset management industry. UK-based asset managers earned revenues of £9.4bn in 2008, compared to £10.2bn in 2007, he added.