Assets of funds managed in the U.K. increased by 17.4% to £8.1 trillion ($10 trillion) in 2016 on the depreciation of pound sterling against other major currencies after the vote to leave the European Union, according to an annual report by TheCityUK published Wednesday.
The industry-led body representing U.K. financial services said institutional investors' assets accounted for around two-thirds of total assets. Alternative funds and sovereign wealth funds constituted around £1 trillion in assets.
Assets of Investment Association member funds in the U.K. managed on behalf of overseas investors stood at £2.6 trillion and constituted 32% of total assets.
Total global assets in the hands of investors stood at $160.6 trillion, according to TheCityUK's estimates. The conventional funds — institutional mutual funds and pension fund and insurance assets — totaled $101 trillion, compared to $94.4 trillion a year earlier, while alternative funds stood at $17.3 trillion, compared to $16 trillion a year earlier. The rest was retail and private client assets.
U.K. pension fund assets increased by 32% in 2016 to £3 trillion. Insurance funds totaled close to £1.1 trillion at the end of 2016, up 4.6% from the previous year, but declining in proportion relative to pension funds and other institutional investors over the past decade, the report said.
Some 57% of the assets managed in the U.K. were run by money managers headquartered overseas, compared to 40% in 2004, according to the report.
