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Asset management: grow your business in the UK
- UK is one of the world’s most open markets for asset management
- total funds under management across the industry increased to a record 8.1 trillion GBP in 2016
- high potential growth
of successive growth
Asset management companies based in the UK are well placed to capture a growing share of business from developing economies, with high potential for growth. With 8% of global pension assets held by UK consumers, the UK offers substantial opportunities to fund managers. We also benefit from a central time zone.
Overseas investors own about 40% of medium sized fund management firms. Asset managers with overseas parent organisations manage 57% of assets managed in the UK according to the Investment Association.
The UK is an important location for fund domicile, with around 12% of European assets under management domiciled in the UK at the end of 2014. The largest asset holders according to City UK are:
- Luxembourg (27%)
- Ireland (15%)
- France (14%)
- Germany (14%)
UK fund management organisations manage various types of funds, from life insurance and pension schemes to unit or investment trusts.
Client types include:
- institutional, which accounted for 79% of assets managed in the UK in 2016, 44% of which were pension funds
- retail - where UK sales were 184 billion GDP in 2016, set to reach a total of almost 1.3 trillion GBP
- private clients with 705 billion GBP managed at the end of 2014
London is a global centre for private equity and property funds and has an 18% share of the hedge fund market. Since 2005, we have also attracted 16% of global Sovereign Wealth Funds.
‘Green finance’ refers to investment in low carbon projects and infrastructure. The UK is a global financial centre and the London Stock Exchange hosts 48 green bonds, representing around 10 billion GBP in 7 currencies.
Clean energy investments in the UK have more than doubled since 2010, rising from 8.1 billion GBP in 2010 to over 18 billion GBP in 2016. The UK’s Green Investment Bank has invested 3.4 billion GBP in over 100 green infrastructure projects.
The UK government is encouraging private investment markets around the world to invest in the UK’s low carbon projects and infrastructure. The City of London’s Green Finance Initiative was established in 2016 to promote the UK as a global centre for green finance. Through Innovate UK, the UK Government has supported the LENDERS project to improve estimations of homeowners’ energy costs when calculating mortgage affordability.
The UK has one of the most competitive tax regimes in the world for both funds and asset managers. Funds that are domiciled in the UK can take advantage of around 120 double taxation agreements - more than in any other country.
The Investment Management Strategy, launched in 2013, is focused on improving the UK's taxation regime, improving the regulatory environment, reducing fund authorisation times, and representing the UK globally through effective marketing.
The government also has up to 50 billion GBP available to support finance and insurance for supplies from within the UK to buyers outside the UK. This support takes the form of guarantees, insurance and loans issued by its export credit agency, UK Export Finance.
You can also access the Department for International Trade's (DIT) wide network of stakeholders across the UK. This network brings together the public and private sector contacts needed to make a success of investing in the UK. DIT can connect you with companies who can help you every step of the way, including the visa process, Financial Conduct Authority (FCA) approvals, establishing bank accounts and recruiting staff.
We can help you grow your business in the UK
Whether you’ve already decided to grow your business here or you’re just starting your research, the UK government can help you make the right decision.
Research your industry
You should research your market to help you decide if the UK is the best place for your business. Contact our Investment Services Team to get market research and other expert help and advice.
Want to move your business to the UK?
You’ll need to follow several steps before moving to the UK, including applying for visas and finding the ideal location for your business. Read our UK setup guide.
The UK government can give you free help and support every step of the way. Contact us to find out more.