IA full membership revenues rise 22%
Pre-tax profits at the Investment Association (IA) more than doubled last year to £371,000 as revenues were buoyed by a greater contribution from membership subscriptions.
The trade body reported total revenue of £9.9m for the year, up from £7.9m, as pre-tax profits rose from £207,000 in 2013, according to a Companies House filing.
The figures come as IA chief executive Daniel Godfrey promised to “do everything we can to convince anybody who is considering leaving to stay” following the news that both M&G and Schroders have decided not to renew their memberships at the end of 2015.
Both fund houses are currently full members of the trade body. It is this segment which forms the bulk of the IA’s revenue: full members contributed £7.7m in revenue last year, up from £6.3m in 2013.
Membership fees are determined “using a series of calculations based on members’ assets under management, funds under management and retail sales”, according to the trade body’s accounts.
The IA declined to comment on what had driven the 22 per cent rise in full membership fees during 2014. Total assets managed by the funds industry rose by 10 per cent to £5.5trn during the period, according to the trade body’s annual survey released last month.
The report and accounts show the membership renewal rate for the year was 99.1 per cent, up from 98.6 per cent in 2013.
The trade body’s retained profit carried forward rose from £1.8m in 2013 to £2.1m. Mr Godfrey’s total pay rose from £474,000 to £532,000.
In a sign of the IA’s increasingly active role under Mr Godfrey, the numbers of circulars issued during the period rose sharply, from 400 in 2013 to 501 last year.
