View more on these topics

80% of funds are following a benchmark

More than three-quarters of UK funds are managed under contracts which require them to track an index or stay close to a specific benchmark, according to the Investment Management Association.

An IMA report, based on a poll of 55 fund managers, reveals that around 60 per cent of assets are managed with a single tracker mandate while 21 per cent are managed against a customised benchmark. This means that less than one-fifth of fund manager investments are true stock picks.

Despite the fact that trackers perform poorly in bear markets, the study estimates industry funds under management have risen by 50 per cent to £1,934bn in the five years to June 2002. The IMA says 30 per cent is managed by the top five groups while 49 per cent manage £20bn or less.

Assets managed by life company subsidiaries account for 34 per cent of the market while fund firms owned by retail or investment banks comprise 36 per cent. Stand-alone fund managers manage 24 per cent.

The study shows how much institutional business continues to dominate UK fund management. Two-thirds of assets are pension or insurance funds, with equities accounting for 54 per cent of assets under management. Bonds account for 24 per cent while money market and alternative asset classes make up the remainder.

IMA head of statistics Dorian Carrell says: “A lot of funds managed against a single benchmark simply have institutional investors who are being more specific. We are impressed with how much business fund managers have done.”

Michael Philips proprietor Michael Philips says: “It is nice to see the industry come clean. Investors are becoming increasingly disgruntled with not getting the active management they are paying for the diversification they expect.”


Menu to suit all tastes

The menu-based protection package is one of the financial services industry&#39s major success stories of the last few years. It is sometimes difficult to believe that it first appeared in the UK as recently as 1996. The convenience factor is a major plus for clients. There is just one set of documentation to maintain instead […]

Fixed loans on the Live agenda

Just when you thought you knew what to expect from mortgage regulation, the Government has bowled the industry a googly in the form of Chancellor Gordon Brown&#39s review into long-term fixed-rate mortgages, announced in the Budget. On the agenda at this year&#39s Money Marketing Live roadshow at London&#39s Olympia on May 13 will be a […]

Morley looks for hot property

MORLEY FUND MANAGEMENT MORLEY HIGH INCOME PROPERTY FUND Type: Unit trust Aim: Growth by investing in direct property, property related corporate bonds and cash Minimum investment: Lump sum £10,000 Investment split: Direct property 75%, property related corporate bonds 20%, cash 5% Isa link: No Pep transfers: No Charges: Initial 5%, annual 1.5% Commission: Initial 3% […]

29% boost in business for Hay

Abbey National&#39s specialist pensions administrator James Hay Pension Trustees has seen a 29 per cent rise in its corporate business for the first quarter.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm