Fund management sets fresh £7tn asset record

The total value of assets presided over by the UK’s investment management sector hit a fresh record high of about £7.1 trillion in the first half of the year.

TheCityUK said the investment management sector now looks after a record £7.1 trillion

TheCityUK, which represents Britain’s financial services industry, also forecast that year-on-year growth would top 9 per cent.

Chris Cummings, chief executive of TheCityUK, said that as a result of the UK government’s efforts to attract more overseas businesses to the country, the UK now had a pipeline of around 50 firms interested in establishing fund management and related operations.

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The sector is estimated to directly employ more than 57,000 people, with a third of those based outwith London in key locations including Edinburgh, Cardiff and Manchester.

According to the TheCityUK, Britain has reinforced its status as the top global centre for fund management on behalf of international clients, hitting a record £2.5tn at the end of 2014, a year-on-year rise of 14 per cent.

Earlier this week, the City regulator launched a probe into whether asset managers deliver value to investors, companies and governments as a key part of its review into the fund management industry.

The Financial Conduct Authority will also review the market to see whether asset managers were “motivated”, able to control costs, and how investment consultants affect competition in the industry.