The UK funds industry is set for a tough 2009 despite returning signs of optimism among investors, as domestic managers continues to feel the impact of the most severe fall in assets for over three decades last year.

Investors pulled a net £2.1bn (€2.4bn) from UK-domiciled open-ended funds in 2008, compared with inflows of £3.8bn the year before, according to a report published yesterday from the Investment Management Association.