Credit crunch causes UK fund industry to plummet by 8%

IMA annual survey reveals industry funds under management have been severely hit by crunch and retail demand for equity funds will remain weak this year

The credit crunch has caused the UK fund industry to drop 8% in size in the first quarter of this year alone. Last week's IMA annual survey revealed the crunch has severely hit the industry's funds under management and predicts retail demand for equity funds will remain weak this year. It was based on questionnaires and the testimonials of senior industry figures from all major IMA member firms in the UK. Overall the total number of funds available has risen by a quarter over the last 10 years but only 55% of firms made sales gains last year and negative performance has shrunk assets,...