Bed-time reading

LET me make a confession. When it comes to bed-time reading - or for that matter reading material for the beach - you cannot beat Richard and Judy's book recommendations. Yes, I do mean that Richard and Judy - Richard Madeley and Judy Finnigan. Although only a recent convert to our Richard and Judy, I am now hooked on their literary recommendations. Over the past week, I have raced my way through James Bradley's The Resurrectionist and Lloyd Jones's magnificent if somewhat distressing Mister Pip.

Yet, in amongst the James Bradley's and Lloyd Jones's of this world, there is another book that has got me temporarily captivated. Well, it's not really a book, more a juicy reference document. It's the latest tome from that august trade association, the Investment Management Association.

Admittedly, the title is hardly enticing, Asset Management in the UK 2007: the IMA's Sixth Annual Survey, but for anyone with the vaguest of interests in the UK's retail fund management industry - be it financial adviser, financial journalist or investment company - it is an absolute must read. It is also free and can be downloaded in a blink of an eye by visiting www.investmentuk.org.

The key findings should be titillating enough for most people. These indicate that IMA member firms currently manage more than £3 trillion of assets in the UK with more than a fifth of these assets, £770bn, managed on behalf of retail investors. Last year, UK-based asset management firms earnt £10.2bn of revenue and directly employed more than 25,000 people.

As Richard Saunders, the splendid chief executive of the IMA points out: "The UK investment management industry is becoming increasingly sophisticated and international. It is larger than the world's sovereign wealth funds and hedge funds combined." Indeed, the UK now accounts for 34 per cent of assets under management in Europe followed by France, 20 per cent, and Germany, 10 per cent.

Although all 95 pages of the report are worth a read, it is the sections on the funds market and operational issues which I found most riveting. This is because they look at some of the key trends in the UK retail fund management industry and assess a number of key industry issues going forward.

A whole range of facts and figures enthralled me but some grabbed me more than others. For a start, I was reassured by the fact that the funds market remains highly competitive with little evidence showing that mega brands are increasing their hold on the industry, in turn forcing smaller players to vacate the industry.

Although the top 10 fund management groups - the likes of Invesco, Perpetual, Fidelity, M&G and Schroder - account for 45 per cent of funds under management, this percentage has changed little over the past 15 years. The industry still possesses a large number of comparatively small firms, many of them boutiques specialising in particular sectors and not necessarily dependent upon continued asset growth to sustain profits. This is a sign of a healthy, competitive industry, providing retail investors with plenty of product choice - some would say, maybe too much product choice.