UK funds under management up 60% on pre-crisis levels

UK-Currency-Money-Coins-700.jpgFunds under management in the UK have reached nearly £7trn at the end of 2014, marking a 60 per cent rise on pre-crisis levels, new research finds.

A report from UK lobby group TheCityUK says UK assets under management reached a record £6.8trn at the end of 2014, marking the sixth consecutive year of growth.

The level of assets under management was also up 9.7 per cent compared to a year ago, the report says.

TheCityUK also estimates that funds managed in the UK in the first half of 2015 increased by around 5 per cent to £7.1trn and expects funds’ growth to reach 9 per cent for the full year.

TheCityUK chief executive Chris Cummings says: “The UK fund management industry is diverse and sophisticated, respected globally and has seen a remarkable recovery post-crisis.”

According to the report, while London accounts for more than 80 per cent of UK-based funds under management, Edinburgh and Glasgow have stepped up in the rankings by assets.

According to Scottish Financial Enterprise, funds managed by the Scottish fund management industry totaled around £800bn in 2014, which makes 12 per cent of the total UK funds under management.

According to the Investment Association, this year 57 per cent of the assets managed in the UK are run by firms with overseas parent organisations, up from compared 39 per cent 10 years ago.

Cummings says the government has embarked on a “long-term commitment” to increasing the attractiveness of the fund management sector in the UK, especially through its Investment Management Strategy initiative and a closer engagement with TheCityUK and the wider industry.

The purpose of the IMS programme includes attracting new asset management firms into the UK, assisting in firms’ international development plans as well as encouraging firms to redomicile funds into the UK.

Cummings says: “As a result [of the IMS], the UK now has a healthy pipeline of around 50 companies interested in setting up an array of fund management and related operations here.”