A new survey from Investment Association (IA) has revealed that funds managed by its UK-based members stood at £10tn last year, up 6% compared to the previous year.

The figure was less than the 11% compound average annual growth rate registered in the last decade, added the survey.

In the report, IA CEO Chris Cummings warned of a gloomy market this year amid war in Ukraine, growing inflation and energy costs, among other concerns.

Cummings said: “Whilst 2021 was a positive year, we now face a very different operating environment.

“Rising interest rates bring the spectre of recession and weaken the outlook for asset growth.”

This week, Sterling hit a record low against the dollar as the government’s new fiscal plan has worried the industry stakeholders, reported Reuters.

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Calls were also made to increase the rate of Bank of England to reinstate confidence among investors.

Last year, fund managers handled £4.1tn of assets on behalf of various investors. Nearly two-thirds of these funds were registered abroad, primarily in Ireland and Luxembourg.

The European Union is yet to substantially check delegation, a process that enables global asset managers to operate funds based out of the union.

According to the IA survey, around half of the assets included in the study are subject to environmental, social and governance norms.

In addition, assets that apply exclusions increased to 28% from last year’s 25%.

Cummings added: “As people balance the very real competing demands of saving for their future and the rising costs of their day-to-day living, the role of investment managers to guide savers to help reach their financial goals, will be more crucial than ever.”