The UK investment management industry recorded an impressive 11% growth in assets under management (AUM) to reach a new peak of £11.1 trillion in 2025 (£10.0 trillion, 2024), according to the latest figures from the Investment Association (IA).

The 11% increase in AUM marks a second consecutive year of double-digit growth, with momentum accelerating in 2025 and total UK-managed assets surpassing £11 trillion for the first time, highlighting the globally competitive nature of the UK industry and increase in money invested by UK savers and institutions.

The global leader in investment management

The UK investment management industry strengthened its position as a leading global investment management centre in 2025. Assets managed in the UK on behalf of overseas clients rose by 15% year-on-year to £5.9 trillion, accounting for 53% of total assets under management, compared with 37% in 2016.

Growth in the assets managed on behalf of overseas clients was recorded across almost every major region in 2025. Europe remained the largest source of overseas client assets, rising from £3.0 trillion to £3.5 trillion and accounting for 59% of the overseas total. Assets managed for North American clients came in second, exceeding £1 trillion for the first time, increasing from £990 billion to £1.1 trillion.

Asia-Pacific recorded the strongest growth among the major regions, with assets rising by 19% year-on-year, from £740 billion to £880 billion. The region remained the third-largest source of overseas client assets, accounting for 15% of the total. Assets managed on behalf of Middle Eastern clients continued to grow steadily, reaching £330 billion and accounting for 6% of overseas client assets.

Supporting UK households

Alongside its growing international client base, the industry continues to manage significant assets on behalf of UK savers and institutions. Assets managed for UK clients have increased by 46% over the past decade, rising from £3.6 trillion in 2015 to £5.2 trillion. In 2025 alone, domestic client assets grew by £345 billion – the largest annual increase since 2020 – demonstrating renewed momentum in the UK market and the industry’s role in helping households build financial resilience and save for long-term financial security.

Retail maintains momentum

Having overtaken pension funds as the industry’s largest client group in 2024, the share of assets managed on behalf of retail investors continued to grow to 30%, marking a decisive shift from the longstanding 80/20 institutional-retail split that held firm until 2020.

This has coincided with the financial services industry working with government, the regulator and consumer organisations to develop both Invest for the Future, a nationwide, multi-year campaign designed to improve understanding of investing and help more people see it as an accessible option for their long-term financial plans, as well as an initiative to improve how risk is communicated to investors.

Pension assets continued to decline as a share of UK-managed assets, falling to 25% from a peak of 45% in 2018. This reflects the continued maturation and de-risking of defined benefit schemes, accelerated by higher interest rates and the 2022 gilt market disruption. As the traditional defined benefit market contracts, growth in defined contribution pensions, together with retail investment increasing its share of assets managed, reflects the growing importance of individual investors to the UK investment management industry.

John Owen, Chief Executive of the Investment Association, said:

“Reaching a record £11.1 trillion in assets under management is a significant achievement and demonstrates the continued competitiveness of the UK investment management industry against a backdrop of geopolitical tension and market volatility. This sustained and widespread growth reflects the UK’s enduring strengths as a global financial centre, including its deep capital markets, highly skilled workforce and established international distribution networks.

“Our industry is both a major international success story and at the heart of the UK’s economic growth engine, mobilising the capital that businesses and infrastructure in this country need to grow. Through the Invest for the Future campaign, investment managers are also playing a vital role in helping millions of Brits build and strengthen their financial futures.

“Maintaining a stable, proportionate and internationally competitive policy, regulatory and tax environment will be essential to preserving these strengths and attracting long-term investment to the UK.“

Source: The Investment Association