The report published on Wednesday by the Investment Association (IA) concludes that the UK remains a go-to destination for investors. With 270 members, the IA regroups investment management companies that deal daily with British savers, investors and businesses.
In total, members of the IA manage £9.4 trillion of assets and support 114,000 jobs across the UK in the investment management sector.
According to IA’s Investment Management Survey, the annual assessment of the state of the industry, assets under management held by its members increased by 11% in 2020.
The two-digit growth means that despite Covid and Brexit, the UK remains the second largest investment management centre in the world behind the United States.
With a market share of 37%, the UK is also the largest investment management centre in Europe.
In fact, the UK’s share of the European market is larger than the combined total of France, Germany and Switzerland.
The UK also remains an attractive hub for overseas investors.
By the end of 2020, overseas client assets accounted for 44% of total assets under management (equivalent to £4.2 trillion).
Chris Cummings, Chief Executive of the Investment Association, said in a statement that the investment management industry proved its resilience despite the pandemic.
“There is no shortage of opportunity” in Britain, said Lionel Assant, Blackstone’s head of European private equity to the New York Times.
2020 was even the year when “it’s all been unleashed” said Richard Buxton, a fund manager at Jupiter Asset Management who has been investing in British stocks since the late 1980s.