European savers continue to entrust the UK’s asset managers with their investments.
According to Investment Association data, total assets managed in the UK on behalf of European clients jumped by nearly 30 per cent in 2016 to reach £1.8trn at the end of last year.
Europe makes up the biggest chunk of total overseas assets managed in the UK.
Overseeing 35 per cent of Europe’s AUM, the UK asset management industry remains the European leader, larger than the next three countries – Germany, France and Switzerland – combined.
In the wake of these findings, IA calls for an appropriate Brexit deal, which would take this into account.
IA chief executive Chris Cummings says: “The clear value the European market brings to the UK asset management industry underlines the urgent need for a Brexit deal to be completed by March 2019 which protects our industry, and more importantly, the savings of millions of people right across Europe.”
Total overseas – European and non-European – assets managed by the UK managers grew as well – by almost a fifth to £3.1trn. IA members oversaw £7.7trn in AUM in total at the end of last year.
Cummings says: “Next year will be a year of change: the UK’s new relationship with the EU and a refreshed focus on building new links with the rest of the world, will reset the priorities and shape of some asset management businesses.”