The UK fund management industry has developed into a diverse, sophisticated and international industry. The UK’s strong reputation as a global fund management centre is based on its skilled workforce, substantial presence of international firms and transparent legal framework. This is complemented by a liberalised operating environment and a fair and predictable supervisory framework.
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. Of the 57,000 people directly employed in the sector, around a third are based outside London. This is a sector which consistently generates a significant trade surplus for the UK economy.
Assets under management of the UK’s fund management sector recovered quickly from the fall experienced at the outset of the economic downturn to reach a record £6.8 trillion in 2014. Of this, some £2.5 trillion was managed on behalf of foreign clients, making the UK the leading global centre on this measure.
TheCityUK, the Investment Association (IA) and the Alternative Investment Management Association (AIMA) are working closely with industry and Government on making the UK as competitive as possible for fund management and domicile. The launch of the one-stop shop service for fund managers last year resulted in a healthy pipeline of around 50 companies interested in setting up an array of fund management activities in the UK. A new tax transparent fund has also been launched and the UK has been an active participant in a number of key events.