Published: 3:43 PM, Jun 20, 2023
Photo by Shubham Dhage on Unsplash
The UK's financial services industry is a powerhouse, and one of its key pillars is asset management. With £11.6 trillion of assets under management, the UK stands as the largest centre for asset management outside the US. This article delves into the UK's asset management industry, its global reach, and its role in sustainable and responsible investing.
A Global Leader in Asset Management
The UK's asset management sector is not just significant within the country, but it also has a substantial global presence. Almost half (46%) of total assets managed in the UK are managed on behalf of overseas clients. This international reach is a testament to the UK's financial expertise and its ability to attract and manage assets for global investors.
Pioneering Sustainable and Responsible Investing
Sustainable and responsible investing (SRI) is a key future trend for global asset managers, and the UK is at the forefront of this movement. UK managers with more than £7tn AUM are now signatories to the Net Zero Asset Managers initiative. Furthermore, SRI funds managed in the UK grew 62% year-on-year to £89bn in 2021. The UK's commitment to SRI is clear, with close to 80% of the assets managed in the UK subject to ESG stewardship activity.
A Deep Talent Pool and Big Corporates on Your Doorstep
The UK's asset management sector is supported by a deep talent pool. In London alone, 33,400 people work in the asset management sector. Additionally, many global companies have their European headquarters in London, providing proximity to clients and major global companies.
Europe's Biggest Asset Management Centre
The UK remains Europe’s biggest Asset Management centre, with 37% of all European assets managed in the UK, significantly more than any other European country. The UK’s share of the European market is larger than the combined total of France, Germany, and Switzerland.
In conclusion, the UK's asset management sector is a vital part of its financial services industry. Its global reach, commitment to sustainable and responsible investing, and deep talent pool make it a leading player in the global asset management landscape.
Liza Pringle is the dynamic force behind Enable Funding, a platform dedicated to providing in-depth insights into the UK's venture capital scene, growth companies, and asset management landscape. As the founder and editor, Liza leverages her extensive experience in finance and investment to empower businesses and investors with the knowledge they need to make informed decisions and drive growth.
With a career spanning over two decades in the financial sector, Liza has a wealth of experience in venture capital, asset management, and financial consulting. She has worked with a diverse range of clients, from startups to established corporations, helping them navigate the complex world of investments.