LONDON (Reuters) - UK fund assets hit a record high in 2017, maintaining the country’s position as the world’s second-largest asset management hub and underscoring the need for a good Brexit deal, the sector’s leading trade body said.
The Investment Association (IA) said assets managed by its members rose 11 percent year on year to a record 7.7 trillion pounds ($10 trillion), while the broader industry rose 12 percent to 9.1 trillion pounds.
Assets managed on behalf of overseas clients rose 19 percent to 3.1 trillion pounds, with more than half - 1.8 trillion pounds - coming from investors elsewhere in Europe, a gain of nearly 30 percent on the prior year.
“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,” IA Chief Executive Chris Cummings said.
The UK manages around 35 percent of Europe’s assets under management, more than the next three biggest countries - Germany, France and Switzerland - combined, it said.
“We are playing an increasingly significant role in the UK economy having invested 1.7 trillion pounds, providing vital funding for UK businesses and infrastructure, and supporting 100,000 jobs around the country,” Cummings said.
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Reporting by Simon Jessop; Editing by Mark Potter