UK Asset Management Market Size

United Kingdom Asset Management Market Analysis

The UK Asset Management Market is expected to register a CAGR of 9.67% during the forecast period(2024-2029).

The COVID-19 pandemic caused problems in daily life that had never been seen before. It also caused big changes in both the real economy and the financial markets. Since many employees, like portfolio and risk managers, worked from home, it was hard to keep track of compliance and supervise them every day. Firms needed to ensure that the increase in remote working did not compromise their operational resilience or cyber security, and they needed to enhance relevant systems and controls if necessary. As many asset management firms relied heavily on third-party service providers, ranging from custodians to technology providers, they needed to be vigilant in continually assessing the service levels of those service providers, which were themselves under increased operational and compliance pressures.

The UK asset management market is a large and well-established industry, with a diverse range of firms operating within it. As of 2021, the industry manages approximately USD 8.47 trillion in assets, making it one of the largest asset management markets in the world. The industry is made up of a mix of large global firms and smaller boutique firms that specialize in specific areas of investing. Some of the largest asset managers in the UK include BlackRock, Vanguard, Fidelity, and Legal & General Investment Management. In terms of the types of assets that UK asset managers invest in, the industry is focused primarily on equities and fixed income. However, there is also a growing interest in alternative assets such as real estate, private equity, and infrastructure.

Institutional investors such as pension funds, insurance companies, and sovereign wealth funds are the largest clients of UK asset managers. These investors often require specialized investment strategies and asset allocation advice to meet their specific investment goals. Retail investors also play a significant role in the UK asset management market. Many asset managers offer mutual funds, ETFs, and other investment vehicles that are designed for individual investors. The rise of robo-advisors and other digital investment platforms has also made it easier for retail investors to access the services of asset managers. The UK asset management market is highly regulated, with the Financial Conduct Authority (FCA) overseeing the industry. The FCA sets high standards for the conduct of asset managers and requires them to operate with transparency and integrity. Overall, the UK asset management market is a critical part of the country's financial system, providing investors with access to a diverse range of investment opportunities and helping to drive economic growth.