The UK investment management industry reached a new peak of £10tn assets under management in 2024.
This was a 10 per cent growth in AUA, according to the latest figures from the Investment Association.
The sector has been boosted by strong equity returns, better economic conditions and increasing assets managed from the UK on behalf of overseas investors.
UK funds under management rose by 5 per cent to £1.49tn.
Chris Cummings, CEO of the Investment Association, said: “The UK investment management industry has reached record highs over the past year, a testament to firms’ resilience amid geopolitical and economic uncertainty.
“The industry has not only adapted to the challenges of 2022 and 2023, but has flourished.”
In 2024, assets managed on behalf of retail investors reached 28 per cent, making up a higher percentage of total AUM than pension funds, at 27 for per cent, for the first time.
The IA said since 2020 and the Covid-19 pandemic, there has been “sustained growth and interest” in retail assets.
Assets managed on behalf of overseas clients in 2024 surpassed 50 per cent for the first time, making up £5.1tn of AUM.
Cummings added: “Industry growth has been supported by the UK’s status as a global centre of excellence for portfolio management as we retain and attract an increasing number of overseas clients.
“Significant improvements to the regulatory environment, enabling firms to introduce appropriate levels of risk and foster innovation, are helping UK firms to continue to thrive and take important steps towards creating a culture of inclusive investment in the UK.
“Maintaining regulatory and political stability will be essential to sustaining competitiveness and attracting long-term capital.”
The IA is involved in a government push to encourage more people to move their money from cash into investments.
“The UK government’s recent efforts to boost domestic capital through the Leeds Reforms signal a powerful alignment between government, regulator, and industry,” said Cummings.
“As retail assets continue to take a growing share of industry AUM, we look forward to building on this momentum to drive further growth and enable more people across the UK to benefit from the long-term growth potential of investing.”
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