U.K. fund management assets totaled £3.5 trillion ($6.5 trillion) in 2005, up 7% from the previous year, driven by growth in alternative asset classes such as hedge funds, according to an annual report by International Financial Services London. Alternative assets, including hedge funds, real estate and private equity, were £374 billion, up 25% from 2004 and 80% higher than in 2002.
Of about $55 trillion in global fund management assets, the United States had 48.2%, Japan accounted for 11.2% and the United Kingdom had 7.4%.
U.K. corporate pension fund assets totaled £896 billion as of Dec. 31, while local authority pension funds and charities recorded £472 billion. Mutual funds domiciled in the U.K. accounted for £347 billion, according to IFS, a group representing the U.K. financial services industry. Assets of insurance companies, mutual funds domiciled outside of the U.K. and other private client funds accounted for the remainder of the U.K. total.