---
title: UK Assets Under Management Close To Pre-Pandemic Levels
description: Retail inflows into responsible funds were four times higher in the first half of 2020 than a year ago.
image: https://articles.marketsmedia.com/hubfs/Imported_Blog_Media/iStock-622004938-May-12-2022-09-24-15-42-AM.jpg
---

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 09.24.2020

 By Shanny Basar

 Buy-side View

# UK Assets Under Management Close To Pre-Pandemic Levels

 09.24.2020 By Shanny Basar

![UK Assets Under Management Close To Pre-Pandemic Levels](https://articles.marketsmedia.com/hubfs/Imported_Blog_Media/iStock-622004938-May-12-2022-09-24-15-42-AM.jpg)

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- Total investments managed in the UK grew by 10% during 2019, and were close to pre-pandemic levels by summer 2020.
- Industry has been resilient through the first half of 2020, but lessons are emerging in a range of operational areas and firms are looking to further support the UK’s economic recovery.
- Responsible investment trends are further strengthening, with retail inflows into those funds four times higher in the first half of 2020 than in the same period during 2019.

Total assets under management by Investment Association (IA) members reached a record high of **£8.5 trillion** at the end of 2019, despite ongoing political instability including the UK’s departure from the EU in January 2020. This represents a **10% increase **on the previous year according to the IA’s Investment Management Survey (IMS) - the annual assessment of the state of the industry in the UK.

IA estimates also suggest that despite the record falls in global markets at the start of the pandemic, by mid-2020 total assets under management had almost returned to pre-pandemic levels.

The continued growth in assets has cemented the UK’s global position as the **second largest investment management centre in the world** after the US, and by far the largest investment management centre in Europe with higher total assets under management than the next top three European centres combined (France, Germany, Switzerland).

The industry has faced significant operational and economic challenges in 2020 as a result of the Covid-19 pandemic. This year’s report identifies a number of lessons that have emerged as a result of firms’ experiences through 2020. These are wide-ranging, from liquidity management through to diversity and inclusion. The report also explores wider themes including the role of the industry in the UK’s economic recovery and the implications of the end of the Brexit transition period, and presents new data on the rising importance of sustainable and responsible investment which, if anything, appears strengthened by the pandemic.

https://twitter.com/InvAssoc/status/1309102345498828804

**Chris Cummings, Chief Executive of the Investment Association, said:**

“It is a mark of the industry’s resilience and focus on delivering for savers that total industry assets have reached £8.5 trillion, significantly driven by customers from around the world choosing the services of UK investment managers.

"While the industry recognises the need for extra diligence as we navigate our way through the dual challenge of Covid-19 and Brexit, we are already preparing for the world of tomorrow. The considerable growth in responsible and sustainable investing over the last 18 months, which has gathered even more strength through the pandemic, is a critical indicator of things to come.”

The industry serves a global client base, managing £3.6 trillion (43% of total assets) on behalf of overseas clients. The majority of those assets (**£2.1 trillion**) come from savers in Europe, although assets from clients in North America and Asia saw the highest year-on-year increases in 2019, reaching **£700 billion** and **£520 billion** respectively.

Investment managers are keen to play their part in the rebuilding of the country’s economy, building on significant new funding already provided to UK businesses. Since March 2020, over** £14 billion** has been provided to publicly-listed UK companies. At the end of 2019, investment managers had invested **£1.6 trillion** in the UK economy which includes **£950 billion **in UK equities and **£450 billion** in corporate bonds.

Investment in infrastructure projects will also become increasingly more important in the context of Covid-19 and constrained government finances. Total investments in UK infrastructure by IA member firms rose to **£45 billion** - up from £35 billion in 2018. **78%** of this investment was in economic infrastructure projects such as energy generation, transport and utilities, while the remaining **22%** was in social infrastructure projects, such as the construction of schools and hospitals.

Responsible investment has emerged as the standout opportunity through the crisis. At the end of 2019, **38%** of total assets under management were subject to ESG integration, which includes both pooled vehicles and segregated mandates. In the UK fund market, UK investor appetite for responsible investment products continues to rise with total funds under management in these type of funds increasing **89%** over the 18 months leading to June 2020. Sales for the first half of 2020 were four times higher than in the first half of 2019. Persistent sales to responsible investment funds were particularly notable during the height of the pandemic when record outflows from the fund market in March were followed by a recovery that saw record inflows of almost £1 billion into responsible investment funds in April.

Source: IA

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