UK assets reach 11 trillion pounds

UK investment management assets reached a record £11.1 trillion in 2025, according to the Investment Association’s latest figures, marking an 11 percent rise from the previous year.

Growth driven by overseas demand

International business continued to dominate the sector, accounting for more than half of total assets under management. Assets held for overseas clients climbed 15 percent to £5.9 trillion, representing 53 percent of the overall pool—a sharp increase from 37 percent in 2016.

Europe remained the largest source of foreign capital, with assets rising from £3 trillion to £3.5 trillion and making up 59 percent of the international total. North American holdings surpassed the £1 trillion mark for the first time, up from £990 billion the year before.

Asia‑Pacific showed the strongest regional growth, expanding 19 percent to £880 billion and contributing 15 percent of overseas assets. Middle Eastern client assets reached £330 billion, or 6 percent of the international share.

Domestic market expands

For UK‑based clients, the industry managed £5.2 trillion at year‑end, a 46 percent increase from £3.6 trillion in 2015. Domestic client assets grew by £345 billion in 2025, the biggest annual rise since 2020.

Retail investors now dominate the market.

Retail investors have become the sector’s largest client group, overtaking pension funds in 2024. Their share of assets rose to 30 percent, shifting the historic balance where institutional investors typically held around 80 percent.

The Investment Association linked this shift to broader efforts encouraging long‑term investing. Campaigns such as “Invest for the Future” aim to demystify markets and improve risk communication, while regulators and consumer groups push for greater accessibility.

In the broader picture, the decline of pension‑fund holdings—from a peak of 45 percent in 2018 to 25 percent now—reflects the maturation of defined‑benefit schemes and the impact of higher interest rates on gilt markets since 2022. This contraction, alongside the rise of defined‑contribution plans and retail investment, highlights the growing prominence of individual investors in the UK’s financial environment.

Industry outlook

IA chief executive John Owen called the record level “a significant achievement,” noting the sector’s resilience amid geopolitical tension and market volatility. He highlighted the United Kingdom’s “deep capital markets, highly skilled workforce and established international distribution networks” as core strengths.

Owen added that maintaining a stable policy, regulatory and tax framework will be key for preserving the industry’s competitive edge and attracting long‑term capital.

While the numbers suggest robust growth, the sector’s reliance on overseas capital introduces exposure to global economic shifts. A slowdown in European markets or tighter cross‑border regulations could temper future expansion, a risk that industry participants will likely monitor closely.

Overall, the data paints a picture of an industry that has successfully broadened its client base and diversified its geographic footprint, positioning itself for continued relevance in a changing financial environment.