LONDON, 14 Nov. - (ANA) - Our new research on the asset management sector outlines the profound shifts in global markets, regulatory landscapes, and investor expectations. Triggered by extraordinary events such as a global pandemic and geopolitical upheavals, as well as an attendant reappraisal of risk and resilience in financial markets, plus an acceleration of technological innovation, these forces have not only tested the adaptability of asset managers, but have also underscored the sector’s critical role in supporting economic stability and growth.

 

This report provides a data-driven assessment of that role, providing a detailed account of the sector’s performance, structure and evolving client base in the UK and globally. The findings reveal a sector that has weathered significant challenges and emerged stronger, more resilient, and more globally connected.

 

The UK’s position as Europe’s largest centre for fund management reflects the international competitiveness of the UK-based sector, helped by its openness to international business, deep talent pool and commitment to innovation. This enables it to make a substantial contribution to the domestic economy.

 

As the sector continues to evolve, shaped by technological advances and shifting client expectations, this report provides a timely and authoritative resource for all those invested in its future.

 

 

 

 

- Assets under management (AUM) by the UK-based fund management industry rebounded in 2024, rising by 10% year on year. There had been something of a recovery in AUM in 2023 after the 12% contraction registered in 2022, but 2024’s increase closed that gap.

In terms of client composition, institutional clients accounted for almost three quarters of total AUM, although retail AUM have increased steadily over the past decade. Private client AUM represented around 1% of the total.

 

- In 2024, for the first time, overseas clients’ AUM represented over half of all assets managed by member firms of The Investment Association. Overseas clients’ AUM reached approximately £5.1trn.

 

- The UK commands over one third of total European AUM, holding the largest market share by a wide margin. France followed in second place with 16.1% of the market.

 

- Alternative funds such as hedge funds and private equity funds represented 17% of total AUM. UK-based hedge fund AUM and private equity investment both ranked second globally (after the US).

 

 

 

 

- The UK-based asset management industry is estimated to account for around 5.8% of financial and related professional services gross value added (GVA). However, this excludes wider multiplier effects which capture the indirect impact and productivity spillovers, which means that the figure likely understates the sector’s overall contribution to the UK economy.

 

- Fund management firms in the UK provided employment for 74,000 people in 2023. Sector employment is concentrated in London and Edinburgh.

 

- Net exports (trade balance) of fund management services increased by an annual average of 12.3% a year from 2013 to 2023. Gross export growth of fund management services was almost as fast, with an average annual growth rate of 11.0%.    - (ANA) -

 

AB/ANA/15 November 2025 - - -