Asset managers will suffer the impact of the credit crunch into 2009 as investors push assets into less risky products that generate less fees, according to new research.

Dushyant Shahrawat, research director for investment management at Massachusetts-based consultancy Towergroup, said: "Asset management fees and therefore firms' revenues for traditional managers will decline because investors are withdrawing money from active funds, and because a sharp drop in asset prices has led to major declines in fund values."