Conventional assets under management of the global fund management industry climbed by 5% in the first nine months of 2012 to a record $84.1 trillion, some 13% above the pre-crisis peak. According to the 2012 edition of our Fund Management report, funds are likely to reach $85.2 trillion by the end of the year.
Pension assets account for nearly 40% of total funds, with the remainder split almost equally between mutual and insurance funds. Together with alternative assets and funds of wealthy individuals, total assets of the global fund management industry are around $120 trillion.
The US remains by far the biggest source of funds, accounting for nearly a half of all conventional assets under management. The UK is the second largest centre in the world, and by far the largest in Europe, with 8% of the total, closely followed by Japan.
The UK fund management industry was responsible for a record £5.1 trillion of funds at the end of 2011. This was up 5% during the year and follows double digit growth in the two previous years. TheCityUK estimates that UK funds under management increased by a further 4% in the first nine months of 2012, with the full year increase likely to reach around 5%. Over a third of UK funds, or some £1.9 trillion, came from overseas clients, a higher proportion than in most other countries. Foreign firms operating in the UK manage more than a half of UK funds.
London is central to the UK’s strong international position. Other large domestic fund management centres include Edinburgh, Liverpool, Glasgow, Aberdeen and Manchester. Fund management generated a UK trade surplus of some £4.3bn in 2011. The sector accounts for around 1% of UK GDP and employees some 60,000 people.
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TheCityUK would like to thank Cannon Place for supporting this report.