Institutional assets managed in the U.K. rose 5.3% to about £4 trillion ($5.1 trillion) in 2018 compared with 2017, while overall U.K.-managed assets remained flat at £7.7 trillion, according to the Investment Association's annual member survey.
Results of the survey, in its 17th year, showed that institutional investors represent 52% of total assets under management in the U.K. Retirement plans accounted for about £2.6 trillion of institutional assets, slightly down from £2.69 trillion vs. 2017 assets. Retirement assets represented 65% of total institutional assets, down from 71%. Insurance assets represented 22% of institutional assets, up from 14% in 2017.
Survey results also showed assets managed on behalf of overseas investors were also flat at £3.1 trillion. Almost 60% of those assets are managed on behalf of European clients at £1.8 trillion, also flat for the 12-month period. U.S. client assets managed in the U.K. totaled £565 billion, up 10.8% from Dec. 31, 2017. Some £665 billion was managed for clients located elsewhere in the world, down 12.5%.
Of those other regions, assets managed for Asian clients totaled £400 billion, about the same as the previous year; Middle Eastern clients totaled £210 billion, down 12.5%; African clients, £30 billion, about the same as the previous year; and Latin American clients, £25 billion, down 28.6%.
The remainder could not be classified geographically.
"Against economic and political headwinds, the U.K. investment management industry has been resilient and remains a domestic and international success story. Investment managers invest £1.6 trillion in the U.K. economy, funding businesses, infrastructure projects and creating jobs across the country," said Chris Cummings, CEO of the Investment Association, in a news release.
"Our ability to seize global opportunities has seen the industry enjoy a decade of robust growth, with an increasing number of savers from around the world choosing to use the services of a U.K. investment manager. Responsible and sustainable investment and the funding of businesses and infrastructure projects through private markets are key new areas that U.K. investment managers can excel in. Getting this right will help ensure better outcomes for UK customers and the domestic economy, and bolster our position to compete internationally," Mr. Cummings added.