UK managed assets total e2.8trn - IMA

UK – Assets managed in the UK as of end of June 2002 were 1.93 trillion pounds (2.8 trillion euros) according to the latest fund manager survey by the Investment Management Association.

In its ninth fund management survey, the IMA questioned members representing around 90% of assets managed in the UK. The total of 1.93 trillion pounds as of June 30 2002 is an increase of 50% from 1997. Assets managed by the IMA members outside the UK were a further 3.5 trillion pounds (5.1 trillion euros).

The top five management groups account for around 29% of assets under management, while 49% managed 20 billion pounds or less.

Ownership of assets remains dominated by managers which are part of insurance groups – accounting for 34% of assets managed in the UK. Fund managers owned 24%, retail banks 21%, investment banks 15%, pension fund managers 4% and custodians 2%. With regards to beneficial ownership, pension funds accounted for nearly 40% of business, and insurance over 25%.

Index trackers accounted for over half of IMA members' institutional mandates, customised benchmarks 20.5%, and specialist mandates 10.2%. The majority of respondents expect growth in the demand for specialist mandates.

In terms of asset allocation, over 50% of assets managed in the UK were invested in equities – 36% in UK equities, 31% in North American equities, 17% in European equities,9% in Japanese equities, 5% in emerging market equities and 2% elsewhere.

Twenty-four percent of assets managed in the UK were invested in bonds – 53% in UK government bonds and overseas government debt, 34% in corporate bonds, eight percent in index-linked bonds, and five percent in high yield bonds.

Cash and money market investments took up over 50% of allocation to the remaining asset classes. Property accounted for 16% of this 22% total, and venture capital, derivatives and other alternative assets accounted for 2% of the 22%.

The IMA surveyed its members at the end of 2002. Funds under management in the UK are defined as all assets managed in the UK regardless of source.