TheCityUK’s ‘UK fund management: An attractive proposition for international funds’ report, shows that UK assets under management reached a record GBP6.8 trillion at the end of 2014, with the sixth successive year of growth, 60 per cent above pre-crisis peak and up 9.7 per cent year-on-year.
TheCityUK also estimates that funds managed in the UK in the first half of 2015 increased by between 4 per cent to 5 per cent to around GBP7.1 trillion, with the full year increase expected to top 9 per cent.
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 GBP2.5 trillion at the end of 2014 – up approximately 14 per cent from 2013.
Chris Cummings, Chief Executive, TheCityUK, (pictured) says: “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 GBP5.2 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 GBP1.1 trillion, private clients GBP705 billion, and alternative funds (hedge funds, property funds and private equity funds) GBP700 billion.
Cummings, adds: “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.”