UK's assets under management growth to outperform US and EU over next seven years

Jessica Clark
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The Square Mile - London's Financial District
Assets under management in the UK are forecast to grow 22 per cent by 2025 (Source: Getty)

The UK asset management industry is expected to outperform both Europe and the US over the next seven years despite Brexit, new research shows.

Assets under management in the UK are forecast to grow 22 per cent by 2025, according to a survey by Bloomberg Intelligence and Simmons & Simmons.

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Between now and the end of 2025 the surveyed asset managers said they expect "conservative" 21 per cent growth in global AUM as firms adjust to regulatory reform.

“Perhaps the standout result here is the strong showing for the UK, which is close to the Asia Pacific region growth rate and several points ahead of the US and the rest of Europe," the report said.

“The result is all the more notable given the imminence of Brexit, which likely exerted a dominant influence over the forecast period and was cited as one of the strongest negative factors for AUM growth by respondents."

The research was published as the Investment Association (IA) outlined a target to double assets under management to £15 trillion over the next decade as part of a plan to strengthen the UK’s reputation as a global hub for the industry.

Proposals included hosting a world economic forum for global investors in the UK, maintaining the leading edge on fintech, and creating a “ globally attractive” UK funds range.

In September IA research showed that the UK remains the largest asset management centre in Europe, with more AUM than Germany, France and Switzerland combined and is second only to the US globally.

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The seven-year forecast follows a difficult period for the industry as AUM fell an average of eight per cent in the fourth quarter of last year due to weakening investor sentiment and volatile equity markets.

Respondents to the Bloomberg Intelligence research, which surveyed 2000 global buy-side professionals, said the most significant risk to the industry in the next few years would be trade wars and other conflicts.