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CHART CENTRAL

$1.5 trillion in AUM still in GBP, just not held there

Managed assets denominated in pound sterling were about $1.54 trillion at the end of 2018, according to data from eVestment, down 22% from the end of 2017. Over the same period, assets under management denominated in the other major European currencies were about $1.79 trillion, down 27% for the year. Since the Brexit referendum, the future of asset management in the U.K. has been in question in terms of how the country’s trade agreement with continental Europe will impact the industry. Despite that the share of assets under management appears to be split evenly between the two groups, data from Calastone show that a net 62 billion of fund investments have moved offshore since June 2016. So, while assets remain denominated in pound sterling, a significant portion of them are domiciled outside the U.K. to remain in EU jurisdiction. The bulk of those net outflows have moved to Dublin.

Calastone provided further context to the magnitude of the net outflows, illustrating that in the 18 months prior to the 2016 referendum the ratio of onshore to offshore holding of GBP-domiciled funds was 14:1, over the nearly three years since, that ratio has fallen to 1.5:1.