UK assets under management at record £6.8trillion by end of 2014 – 60% above pre-crisis peak
TheCityUK's 'UK fund management: An attractive proposition for international funds' report, released today, reveals that UK assets under management reached a record £6.8trillion at the end of 2014 – the sixth successive year of growth, 60% above pre-crisis peak and up 9.7% year-on-year. TheCityUK also estimates that funds managed in the UK in H1 2015 increased by between 4% – 5% to around £7.1 trillion, with the full year increase expected to top 9%.
The UK has also consolidated its position as the leading global centre for the management of funds on behalf of international clients, with total funds managed reaching a record £2.5 trillion at the end of 2014 – up approximately 14% from 2013.
Chris Cummings, Chief Executive, TheCityUK, said:
"The UK fund management industry is diverse and sophisticated, respected globally and has seen a remarkable recovery post-crisis. It also makes a significant contribution to the UK economy, directly employing over 57,000 people right across the country, one third of whom work in important regional centres such as Edinburgh, Manchester, Liverpool and Cardiff. With net exports in 2014 totalling around £5.2 billion, the sector also generates a significant trade surplus, helping to offset the UK's trade in goods deficit."
According to the report, institutional clients (insurance funds, pension funds, local authority and charity funds) have become increasingly prominent and accounted for around two-thirds of UK funds under management at the end of 2014. Retail clients' assets accounted for £1.1 trillion, private clients £705billion, and alternative funds (hedge funds, property funds and private equity funds) £700billion.
Mr Cummings, added, "The Government has given a long-term commitment to increasing the attractiveness of the fund management sector through its Investment Management Strategy and through close engagement with TheCityUK and the wider industry. As a result, the UK now has a healthy pipeline of around 50 companies interested in setting up an array of fund management and related operations here.
"We welcomed the relaunch of the Financial Services Trade and Investment Board (FSTIB) earlier this year, and would like to see the fund management industry remain a priority area of focus for the new Government. We look forward to continuing our work with the Government and wider industry to extend the promotion of the fund management sector overseas and further strengthen the UK's position as an attractive location for international fund management."