United Kingdom Asset Management Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR (2024 - 2029) | 9.67 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
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.
United Kingdom Asset Management Market Trends
Growth in ESG Category is Driving the UK to Top Spot, Globally
Environmental, social, and governance (ESG) decisions are mostly made based on financial returns and tax incentives. This is true for all issuers and most investors. When it comes to issuers, the UK and Canada go against this trend, especially when it comes to those with more than USD 10 billion in sales in Europe. In the United Kingdom, 65.1% of issuers disclosed that they have an ESG in place. For issuers, company policies, strategies, and ESG goals are also important. For asset managers, regulation is still the most important factor. Disclosure of ESG strategy and policy is an important factor nowadays. Furthermore, the United Kingdom led the global ESG strategy with 92.9% penetration.
Increase in Mergers and Acquisitions in Asset Management Market
During the period in question, mergers and acquisitions (M&A) between firms in the asset management market are expected to rise. 68% of asset managers expect M&A deal volume to rise in the next 12 months. This rise in M&A activity in the UK asset management market is caused by several things. One is the ongoing consolidation within the industry. As larger firms get even bigger, they are looking for ways to grow their market share through acquisition. This is especially true in developed markets such as North America and Europe, where there is less opportunity for organic growth.
Another factor driving M&A activity is the increasing pressure on margins. With competition intensifying and fee compression continuing, many firms are looking to achieve scale through M&A to reduce costs. In addition, many firms are looking to add new capabilities through M&A to stay ahead of the curve and meet evolving customer needs.
United Kingdom Asset Management Industry Overview
There are a lot of big international players in the UK asset management market, which makes it very competitive. The market studied presents opportunities for growth during the forecast period, which is expected to further drive market competition. With multiple domestic players holding significant shares, the market studied is competitive. Some of the major players in the market are Legal and General Investment Management, Insight Investment Management (Global) Ltd, Schroder Investment Management Ltd, BlackRock Investment Management (UK) Ltd, and UBS Asset Management Ltd.
United Kingdom Asset Management Market Leaders
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Legal and General Investment Management
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Insight Investment Management (Global) Ltd
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Schroder Investment Management Ltd
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BlackRock Investment Management (UK) Ltd
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UBS Asset Management Ltd
*Disclaimer: Major Players sorted in no particular order
United Kingdom Asset Management Market News
- June 18, 2023: GFH Group announced its ongoing growth and diversification with the launch of GFH Partners Ltd a fully-owned subsidiary focused on expanding the Group's global asset management capabilities with a particular focus on the real estate sector, where GFH Partners currently manages over USD 6 billion of real estate assets as part of the total USDS 18 billion of assets managed by the Group. GFH Partners manages assets in the stabilized and core markets of the US and in the UK.
- May 31, 2023: London-based investment manager Lansdowne Partners LLP had agreed to acquire the USD 1.1 billion UK equities manager CRUX Asset Management.
UK Asset Management Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Deliverables
- 1.2 Study Assumptions
- 1.3 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
- 4.1 Market Overview
- 4.2 Market Drivers
- 4.3 Market Restraints
- 4.4 Technological Innovations
- 4.5 Industry policies and Government regulations
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4.6 Insights on Various Asset Management Industry Trends in UK
- 4.6.1 Insights on Responsible Investment Instruments in UK
- 4.6.2 Insights on AuM between Segregated Mandates and Pooled Investments
- 4.6.3 ETF Markets And Their Resilience During Market Turmoil
- 4.6.4 Insights on Location wise Assets Managed within UK by UK based asset managers
- 4.6.5 Insights on Location wise Assets Managed Overseas by UK based asset managers
- 4.7 Insights on Fee Structure, Operating Cost of UK Asset Management Industry And Their Importance in UK Economy
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4.8 Porter's Five Forces Analysis
- 4.8.1 Bargaining Power of Buyers/Consumers
- 4.8.2 Bargaining Power of Suppliers
- 4.8.3 Threat of New Entrants
- 4.8.4 Threat of Substitute Products
- 4.8.5 Intensity of Competitive Rivalry
- 4.9 Impact of COVID-19 on UK Asset management Market
5. MARKET SEGMENTATION
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5.1 Asset Class
- 5.1.1 Equity
- 5.1.2 Fixed Income
- 5.1.3 Property
- 5.1.4 Cash
- 5.1.5 Other Asset Classes (liability Driven Investment(LDI) Strategies, etc)
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5.2 By Client Type
- 5.2.1 Retail
- 5.2.2 Private Clients
- 5.2.3 Institutional Investors
- 5.2.3.1 Pension Funds
- 5.2.3.2 Insurance Companies
- 5.2.3.3 Public Sector
- 5.2.3.4 Corporate Clients
- 5.2.3.5 Other Institutional Clients
6. COMPETITIVE LANDSCAPE
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6.1 Company Profiles
- 6.1.1 Legal and General Investment Management
- 6.1.2 Insight Investment Management (Global) Ltd.
- 6.1.3 Schroder Investment Management Ltd.
- 6.1.4 Aviva Investors
- 6.1.5 M&G Investments Ltd.
- 6.1.6 UBS Asset Management Ltd.
- 6.1.7 BlackRock Investment Management (UK) Ltd.
- 6.1.8 Aberdeen Standard Investments
- 6.1.9 State Street Global Advisors UK Ltd.
- 6.1.10 J.P. Morgan Asset Management
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
United Kingdom Asset Management Industry Segmentation
Asset management is the practice of increasing total wealth over time by acquiring, maintaining, and trading investments that have the potential to grow in value. The United Kingdom Asset Management Market is segmented by Asset Class (Equity, fixed income, property, Cash, Others), By Client Type (Retail, Private, Institutional Investors and sub-types within institutional investors). The report offers market sizes and forecasts for the Asset Management Market in the United Kingdom in value (USD) for all the above segments.
| Asset Class | Equity | |
| Fixed Income | ||
| Property | ||
| Cash | ||
| Other Asset Classes (liability Driven Investment(LDI) Strategies, etc) | ||
| By Client Type | Retail | |
| Private Clients | ||
| Institutional Investors | Pension Funds | |
| Insurance Companies | ||
| Public Sector | ||
| Corporate Clients | ||
| Other Institutional Clients |
UK Asset Management Market Research FAQs
What is the current UK Asset Management Market size?
The UK Asset Management Market is projected to register a CAGR of 9.67% during the forecast period (2024-2029)
Who are the key players in UK Asset Management Market?
Legal and General Investment Management, Insight Investment Management (Global) Ltd, Schroder Investment Management Ltd, BlackRock Investment Management (UK) Ltd and UBS Asset Management Ltd are the major companies operating in the UK Asset Management Market.
What years does this UK Asset Management Market cover?
The report covers the UK Asset Management Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the UK Asset Management Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
How is cloud technology impacting the United Kingdom Asset Management Industry?
Cloud-based IT asset management solutions are promoting the United Kingdom Asset Management Industry growth due to their flexibility, scalability, accessibility, and cost-effectiveness. These solutions enable organizations to manage assets more efficiently across different locations and improve collaboration.
UK Wealth Management Industry Report
The United Kingdom asset management industry is experiencing robust growth, driven by increasing demand for investment products, technological advancements, and the adoption of cloud-based IT solutions. These cloud solutions enhance scalability, flexibility, and cost-efficiency, facilitating seamless asset integration and management across multiple locations. The market offers a diverse range of asset classes such as equity, fixed income, property, cash, and specialized strategies like Liability Driven Investment (LDI), catering to retail investors, private clients, and institutional investors. Equity remains a dominant asset class due to its potential for high returns and capital growth, appealing particularly to asset managers focused on diversifying portfolios to align with client investment goals.
The regulatory environment ensures transparency and integrity, with a growing interest in environmentally and socially responsible investments. Additionally, the market is witnessing an increase in mergers and acquisitions. Overall, the UK asset management industry is poised for continued growth, leveraging its robust regulatory framework and innovative investment solutions to attract both domestic and international investors.
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