The UK - A Gateway to Global Asset Allocation
The UK is the world’s largest asset management centre outside the US. With £8.5 trillion of assets under management, the UK’s asset management sector is larger than those of the next three largest European markets combined (France, Germany and Switzerland).
It is home to one of the world’s largest active investment management industries, spanning multiple markets and asset classes. It is also uniquely well-placed to help global investors exploit the potential of private assets. It offers a range of attractive opportunities across a diverse range of asset classes, often through managers and sponsors that have pioneered innovative new structures to accommodate investors’ needs. A pioneer in sustainable finance, ESG investment is one of the UK asset management industry’s key strengths, supported by robust policies, availability of information for effective ESG processes and evaluation as well as diverse talent as an ESG hub.
The UK’s capital market has always been at the forefront of financial innovation, bringing the UK and international companies and investors together to raise and invest capital efficiently. Its highly liquid and international capital market has a long track record of facilitating cross-border transactions. London is an important destination for asset managers from all around the world seeking to attract international investors to their own products and services. The UK’s role in this regard is to connect those with capital to those seeking to manage and service such assets. It offers a safe, convenient and comfortable venue to global asset managers seeking to do business with investors, both from the UK itself and from other jurisdictions.
This report, published by City of London Corporation, summarises the key strengths of the UK as a global asset management hub, highlighting the reasons why the UK’s asset management industry is well-placed to support international asset managers and asset owners in active and passive investment including ESG, risk management as well as global asset allocation. Alongside the Investment Management Campaign launched by the Corporation in early 2020, this report aims to help asset managers in emerging markets such as China to expand their global footprint via London.