UK asset managers say EMU could collapse - survey
02:03 a.m. Jul 15, 1998 Eastern
LONDON, July 15 (Reuters) - Over 85 percent of British asset managers
believe European economic and monetary union (EMU) could collapse within
the first five years, according to a survey released on Wednesday.
The survey, compiled by consultants Mitchell Madison Group, found that
62 percent of respondents rated an EMU collapse at between 5-25 percent
likely, with 19 percent rating the chances at 26-75 percent and four
percent at more than 75 percent.
Respondents to the poll manage over 1.1 trillion pounds, or about 40
percent of British assets under management, Mitchell Madison said.
Fund managers believe that EMU will go ahead as planned, with 74 percent
very confident.
Mitchell Madison also found that 53 percent of asset managers in Britain
did not have an EMU-related risk management programme in place.
It is extremely worrying that while an overwhelming majority of
companies think EMU could collapse within five years, less than 50
percent have a risk management plan in place to deal with the situation,
said Sandy McGuffog of Mitchell Madison.
The survey found that British asset managers saw more chance of currency
fluctuations and instability after EMU than before.
A total of 91 percent think pre-EMU currency fluctuations between
first-wave euro currencies and outsiders will remain about the same as
now.
But 30 percent expect there will be higher volatility between the euro
and other currencies post-EMU.
((James Saft, London newsroom +171 542 2734,
ukinvestments.news+reuters.com))
Copyright 1998 Reuters Limited. |
