Turnover of investment managers in the UK has slowed down this year compared with last year but rapid staff changes are still a cause for co...

Turnover of investment managers in the UK has slowed down this year compared with last year but rapid staff changes are still a cause for concern, according to a report by Investment Solutions Group, a multi-manager investment firm. Turnover averaged 56 per cent this year, down from 66 per cent in 2005, when measured as a percentage of total gains and losses, said ISG. High staff turnover in the UK’s investment management industry is being fuelled by mergers between fund managers, launches of small boutique businesses and changes in how clients choose to invest, the report said. The increase in the number of hedge funds, which are attracting investment professionals from traditional fund managers and banks, was also cited as a driving factor. Turnover is highest among fixed income professionals, at 61 per cent this year, down from 70 per cent a year before. Turnover in equity professionals stood at 51 per cent, down from 62 per cent. The report was carried out this September and covered more than 45 investment management firms.