Assets managed in the U.K. grew 11% to a record £7.7 trillion ($10 trillion) in 2017 compared with 2016, according to the Investment Association's annual member survey.
The survey, in its 16th year, showed assets managed on behalf of overseas investors grew 19% to £3.1 trillion. Almost 60% of those assets are run on behalf of European clients at £1.8 trillion, a 29% increase for the 12 months.
U.S. client assets run in the U.K. totaled £510 billion, up 13% from Dec. 31, 2016. The remaining £790 billion was run for clients located elsewhere in the world, up 5.3%. Assets managed for Middle Eastern clients totaled £240 billion; Asian clients, £400 billion; Latin American clients, £35 billion; and African clients, £30 billion. The remainder could not be classified geographically.
Institutional investors represent 78.8% of total assets under management in the U.K., with money managers running about £3.8 trillion on their behalf. That is up 15% from last year when managers ran £3.3 trillion for institutional clients.
Retirement plans accounted for about £2.69 trillion of institutional assets, up 22% vs. 2016 assets. Retirement assets represented 71.3% of total institutional assets. Insurance assets represented 14% of institutional assets, down from 27% in 2016.
"The IA's latest data reveal that assets managed in the U.K. for European clients increased by nearly 30% in 2017 to £1.8 trillion, making Europe the largest source of overseas assets for U.K. asset managers. The clear value the European market brings to the U.K. asset management industry underlines the urgent need for a Brexit deal to be completed by March 2019, which protects our industry, and more importantly, the savings of millions of people right across Europe," said Chris Cummings, IA's CEO, in a statement accompanying the report.
"The IA's definite overview of asset management illustrates that it is an exciting time for our industry. We are playing an increasingly significant role in the U.K. economy with £1.7 trillion (in) investment, providing vital funding to U.K. businesses and infrastructure," Mr. Cummings added.