Total investments managed in the UK grew by 10% during 2019 and were near to pre-pandemic levels by the summer, according to new data from the fund managers’ body the Investment Association.

The IA said the sector had been been “resilient” through the first half of 2020.

It noted that responsible investment trends were strengthening with retail inflows into SRI funds four times higher in the first half of 2020 than in the same period during 2019.

Total assets under management by Investment Association members reached a record £8.5 trillion byt the end of 2019 - up 10% increase on the previous year, according to the IA’s Investment Management Survey.  

The IA estimates also suggest that despite big 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 growth in assets has also “cemented” the UK’s global position as the second largest investment management centre in the world after the US and 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 survey did find, however, that the pandemic had caused “significant operational and economic challenges”  and firms were learning lessons from experiences in 2020. These included liquidity management and diversity and inclusion issues.

The survey found that the industry serves a increasingly 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.  

Since March, over £14 billion has been provided to publicly-listed UK companies. Total investments in UK infrastructure by IA member firms rose to £45 billion - up from £35 billion in 2018.