UK managers resist temptation of complex instruments

KPMG research reveals UK managers' reduction of exposure to complex financial instruments has steered their funds clear of credit crunch fallout

Industry figures believe UK funds have largely evaded credit crunch fallout from complex financial instruments like CDOs because few opted to invest in them. Last week, KPMG research claimed one in five fund groups worldwide have brought complex instruments into funds, despite the fact they have no in-house experience. The research also claimed that over 40% of fund managers worldwide bought financial instruments over the past year where they struggled to assess the risk adequately. IMA chief executive Richard Saunders said the issue is largely confined to certain enhanced money marke...