The UK is one of the leading global locations and by far the largest European centre for fund management. Assets under management of the industry increased for the fifth successive year to a record £6.2 trillion at the end of 2013. The 14% increase during the year was due both to an inflow of new funds and strong investment returns.
Nearly two-thirds of funds under management came from institutional clients. Retail clients generated a further 16%, with the remainder accounted for by private client funds and alternative funds. While London is central to the UK’s strong international position, other cities such as Edinburgh, Glasgow, Aberdeen, Manchester, Liverpool, Cardiff and Birmingham are also important centres for fund management.
In an international context, UK funds under management accounted for 8.4% of global fund management assets, totalling $146 trillion at the end of 2013. The US remains by far the biggest source of funds, accounting for nearly half of assets.