The UK is one of the most open markets for asset management, and has had 7 successive years of growth. Total funds under management increased to a record 6.9 trillion GBP at the end of 2015.
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.[source: 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%)
Companies based in the UK are well placed to capture a growing share of business from developing economies, with high potential for growth.
Support services in front, middle and back office are state-of-the-art, offering significant cost efficiencies. We also benefit from a central time zone.
“Green finance”: how the UK government is supporting the market
“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 10.8 billion USD in 2010 to over 25 billion USD in 2016.
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 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.