Rising from £9.1 trillion in 2023, the UK investment management sector’s assets under management (AUM) grew to £10 trillion in 2024, reflecting robust market performance supported by stronger economic conditions and a growing volume of overseas assets managed from the UK.
Funds under management in UK-based vehicles climbed 5% to around £1.5 trillion, driven by improved investor confidence and healthy market returns.
For the first time, assets managed for retail investors accounted for a larger share of total AUM (28%) than pension funds (27%). Pension assets have declined from their 2018 peak of 45% of total AUM, in part due to the ongoing wind-down of defined benefit (DB) schemes. Many DB schemes have reached full funding and are transferring both liabilities and assets to insurers.
Overseas clients now represent more than half (51%) of all assets managed in the UK, a milestone that marks more than a doubling over the past decade. This segment has expanded at a faster pace than UK client assets, with growth of nearly 40% over the same period.