Flows of money from overseas investors boosted funds at British asset managers to a record £5.4trn last year, it has emerged.
The amount of capital now managed by these companies stands 30 per cent higher than before the financial crisis, according to figures from TheCityUK. More than a third of the funds, or about £2trn, came from foreign clients, meaning the UK now accounts for more than 8 per cent of global fund management assets.
Chris Cummings, chief executive of TheCityUK, said: “The UK is one of the most open markets in the world for fund management. UK firms are also well positioned to gain new international business, particularly in emerging markets where growth prospects look strong.
“While London is central to the UK’s strong international position, other cities such as Edinburgh, Glasgow, Aberdeen, Manchester, Liverpool, Cardiff and Birmingham are also important centres for fund management.”
Almost two-thirds of the funds under management came from institutional clients while retail clients generated a further 14 per cent. The rest was from private client funds and alternative funds.
The figures come after the Office for National Statistics revealed that more than half of UK shares are owned by foreign investors.