Mergers and acquisitions in the asset management sector dropped by 35% in the first quarter, compared to the same period last year, according to new research, despite the high-profile disposals of investment businesses by banks such as Credit Suisse, Société Générale and Barclays.

Analysts at Jefferies Putnam Lovell, who track M&A in the sector, said 37 deals were signed during the first three months of 2009, down from 57 in the same period a year before.