Assets managed in the UK on behalf of overseas clients have surpassed 50% for the first time, comprising £5.1trn of AUM, according to the latest figures from the Investment Association.
Overseas client assets have more than doubled over the past decade, growing at a faster rate than UK client assets, which increased approximately 40% over the same period.
European client assets now account for 59% of overseas AUM, totalling £3trn, up by 20% year on year, while UK investment management firms manage £990bn of assets for North American investors and £740bn on behalf of clients in Asia-Pacific.
Assets managed for Latin-American clients were the fastest growing in 2024, increasing by 40% to reach £70bn.
Meanwhile of the £4.9trn of assets in UK investment funds 69% are in funds domiciled overseas. Most of 2024’s investment fund growth was through funds domiciled in Ireland, which now make up over half of overseas fund assets managed from the UK.
In total, assets under management in the UK reached a record £10trn in 2024, a 10% increase on 2023, when AUM was £9.1trn.
Assets managed on behalf of retail investors reached 28% in 2024, marking a larger chunk of total AUM than pension funds (27%) for the first time.
Pension assets fell from a peak of 45% of total AUM in 2018 to 27% in 2024 largely driven by increasing numbers of defined benefit schemes winding down.
Indexing strategies reached their highest ever level of 35% of AUM in 2024, after a slight dip in 2023 due to market volatility and LDI assets temporarily denting growth.
Chris Cummings, CEO of the Investment Association, said: “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.”
