The assets under management of UK fund managers grew to a record £8.1 trillion (€9.3 trillion) in 2016, up 17.4% from 2015.
The figure was published today in TheCityUK’s latest “UK Fund Management” report, which said that much of the growth was driven by an increase in the value of overseas assets falling the crash in sterling versus other currencies following the Brexit referendum in June 2016.
The report also reveals that that over a third (37%) of funds under management in the UK – a record £2.6 trillion – are managed on behalf of overseas clients, making the UK the leading global centre on this measure.
Anjalika Bardalai, chief economist and head of research at TheCityUK, said that, while the UK continues to be a world leader at managing overseas assets, technological advancements and increasing competition from emerging centres, such as Hong Kong and Singapore, mean that UK fund managers should not be complacent.
“To maintain London and the UK as a global centre for asset management, it is vital that an ambitious and pragmatic Brexit deal is secured,” she said.
“Failure to do so will only strengthen existing centres in the US and Japan as well as rising competitors in Asia.”
The report also highlights strong net exports by UK fund managers, which totalled £6.2 billion in 2016 and helped to offset Britain’s trade deficit in goods.
Overall, UK-based fund managers generated £3.3 billion of UK economic output in 2016, employing 52,000 people across the UK.
Institutional clients account for around four-fifths (79%) of total UK funds under management, the report said, with the remainder accounted for by retail and private clients.
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