Assets under management by money managers associated with the Investment Management Association, a U.K. asset management trade organization, declined 11% to £3 trillion ($4.87 trillion) in 2008, according to a survey by the IMA.
About 41% was invested in equities, 39% in fixed income, 11% in cash, 5% in alternatives and 4% in real estate.
“It has been a challenging year for the industry and while asset managers are weathering the storm, there will be a number of lessons to learn,” said Richard Sunders, Investment Management Association CEO, said in a news release. “At the product level, firms are reflecting on the strategies they use and the products that clients seek. At a macro level, the banking industry needs to undergo radical reform and that will affect our firms as investors and users of the market.”
A summary of the report said that despite the increased mergers and acquisitions activity of money management firms, the industry as a whole “remains unconcentrated and not readily consolidated.”
The summary said 75 firms responded to the survey.