The value of assets in overseas-domiciled funds managed in the U.K. grew 11.7% to £1 trillion ($1.5 trillion) over the year ended Dec. 31, highlighting the importance of the U.K. as a global investment hub, said the Investment Association.
The U.K. trade body for money managers found in its annual survey that assets run by its members totaled £5.7 trillion, flat vs. Dec. 31, 2014. About £3.5 trillion of that was managed on behalf of U.K. clients, £1.2 trillion for European clients, £310 billion for U.S. clients and £660 billion for clients located in the rest of the world.
Institutional assets accounted for a total £3.3 trillion of assets managed by members of the IA, up 6.5% vs. the 2014 survey. Pension funds accounted for 57% of institutional assets, up from 52% as of Dec. 31, 2014. Insurance assets represented 29% of institutional allocations, up from 32% a year previous.
“The U.K.'s decision to leave the European Union is a source of major regulatory and political uncertainty for the asset management industry, which is highly international but simultaneously highly integrated within the EU,” said the report. “The future of the U.K. as a center of excellence for asset management will depend on its ability to adapt to the new world.”