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UK Funds Under Management Down 12% in 2008 to £3.7 Trillion, Signs of Recovery in 2009
September 30, 2009--UK assets under management fell 12 per cent in 2008 to £3.7 trillion according to the annual Fund Management report by International Financial Services London (IFSL), the independent organisation promoting UK financial services worldwide.
The decline follows five successive years of growth, averaging eight per cent per year. Poor investment performance, reduced inflow of new funds and investor redemptions all contributed to the fall in assets over the past year. Early indicators for 2009 show that the industry has started to recover with a 14 per cent gain in assets of UK domiciled retail funds in the first seven months of the year.
According to IFSL’s report, institutional funds1 were the source of two-thirds of UK funds under management in 2008. Around 16 per cent came from retail funds, 9 per cent from alternative funds2 and the remainder from private clients.
Marko Maslakovic, Senior Economist at IFSL said: “Profit margins among fund managers in the UK declined from 32 per cent to 23 per cent in 2008 as revenues fell faster than costs. Profitability is likely to remain at lower levels in 2009 as market conditions including reduced asset values, increased competition for new business and investor shift to lower revenue asset classes persist.”
Global trends:
Worldwide conventional investment management assets3 fell 19 per cent in 2008 to $61.6 trillion (see Table below). The decline reported in US dollars was exacerbated by the strengthening of the US dollar during the year. Pension assets accounted for $24.0 trillion of the total, with a further $18.7 trillion invested in insurance funds and $18.9 trillion in mutual funds. Together with alternative funds2 and private wealth funds, assets of the global fund management industry amounted to around $90 trillion.
View the Fund Management 2009 report
London begins to lose appeal for hedge funds
September 30, 2009-London’s position as the world’s number two city for hedge funds is beginning to slip after almost a decade of gaining ground.
New York, meanwhile, is reasserting itself in spite of the Madoff scandal, the fall of Lehman Brothers and a series of high-profile fund liquidations
Man signals comeback of private investors
September 30, 2009--Investors have begun to return to funds run by Man Group, the world’s largest listed hedge fund manager, signalling a change in fortune over the second quarter for the London-based company.
Total assets under management, at $43.8bn (£27.4bn), are down from their peak of $79.5bn in June 2008, but flows have stabilised over the past six months, according to Man.
Source’s assets reach USD2.2bn
September 30, 2009--Source, a provider of exchange-traded products, says total assets in its range of products have reached USD2.2bn (EUR1.5bn).
Source’s new sector products have gathered nearly USD950m (EUR650m) in just over two months in the market and have been widely accepted in the institutional market, particularly by hedge funds.
The products are designed to facilitate trading and investment through buying, short-selling, borrowing and lending.
