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News > Britain’s fund management assets rise in 2021

Britain’s fund management assets rise in 2021

Tuesday 27 September 2022

Fund managers in Britain posted a 6 per cent rise in assets under management to £10 trillion last year the Investment Association (IA).

The 2021 growth rate was below the 11 per cent compound average annual increase seen in the last 10 years, according to an IA survey.

"Whilst 2021 was a positive year, we now face a very different operating environment,” IA CEO Chris Cummings said in the report, pointing to the war in Ukraine. “Rising interest rates bring the spectre of recession and weaken the outlook for asset growth.”

Sterling fell to record lows against the dollar this week as fears mounted over the government’s recently-announced fiscal plan, unleashing calls for an emergency Bank of England rate hike to restore confidence.

Assets managed within funds open to a range of investors reached £4.1 trillion last year, with almost two-thirds sitting in funds registered overseas, mainly in Ireland and Luxembourg.

Nearly half of assets in the survey are now subject to environmental, social and governance criteria, and assets applying exclusions reached 28 per cent, from 25 per cent a year earlier.

Cummings described the growth of sustainable and responsible investing as a “standout trend”.