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June 28, 2018updated 29 Jun 2018 10:36am

Assets in UK wealth industry approach £1trn mark

By Saloni Sardana

UK assets under management have almost reached the £1trn mark for the first time.

This was the key finding of a survey conducted by Compeer, a provider of Business Performance Benchmarking for the Wealth Management and Private Banking industry

The research showed that assets in the UK reached £957bn in 2017. This was 13% higher than 2016.

Assets grew year-on-year because of a growth in discretionary and non-managed services.

Discretionary services increased by £57bn to £549bn.

The implementation of recent new regulations has pressurized cost margins. £5.07bn was spent on costs in 2017, a 5% increase from the previous year.

Wealth managers also achieved £104bn of assets inflows in 2017, with collective-based investments representing 40.7% of all assets.

James Brown, head of client services at Compeer said: “This move towards collective-based investments suggests further caution in investment decisions, which is to be expected in light of the uncertainty surrounding Brexit negotiations.

Brown added: “However, the latest report shows that the wealth management industry is continuing to grow and deliver record profits. This is fundamental to the UK industry as it seeks to strengthen its global relationships with emerging markets in a post-Brexit world.”

The annual UK wealth management industry report involved benchmarking survey by Compeer tracks 176 firms comprised of execution only stockbrokers, full service wealth managers, investment managers and private banks.

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