Assets under management (AUM) in the UK investment management industry reached a record high of £11.1trn in 2025, while the share of assets managed on behalf of pension schemes fell to 25 per cent, the latest figures from the Investment Association (IA) have shown.

The record was set after an 11 per cent year-on-year increase in AUM between 2024 and 2025, marking the second consecutive year of double-digit growth.

The IA said the increase highlighted the globally competitive nature of the UK industry and the growth in money invested by people and institutions.

Pension assets as a share of UK-managed assets continued to decline, falling to 25 per cent from a peak of 45 per cent in 2018.

This fall was being driven by the continuing maturation and de-risking of defined benefit (DB) pension schemes, accelerated by higher interest rates and the 2022 gilts market crisis, the IA noted.

Retail investors overtook pension schemes as the investment management industry’s largest client group in 2024 and continued to grow to 30 per cent of assets managed in 2025.

This marked a shift from the ‘longstanding’ 80/20 institutional/retail split that remained steady until 2020.

As the DB pension market continues to contract, the rise of defined contribution pensions, alongside retail investment increasing its share of assets managed, reflected the growing importance of individual investors to the investment management industry, the IA said.

Assets managed in the UK on behalf of overseas clients rose by 15 per cent over the year to £5.9trn.

Overseas client assets accounted for 53 per cent of the total AUM, up from 37 per cent in 2016.

Europe remained the largest source of overseas client assets, rising from £3trn to £3.5trn and making up 59 per cent of the overseas total.

North American client assets came in second, increasing from £990bn to £1.1trn in 2025.

The strongest growth was recorded by Asia-Pacific assets managed in the UK, with assets increasing by 19 per cent year-on-year to £880bn.

Assets managed on behalf of Middle Eastern clients continued to “grow steadily”, reaching £330bn.

UK client assets have increased by 46 per cent over the past decade, rising from £3.6trn in 2015 to £5.2trn in 2025.

In 2025, UK client assets managed by the industry grew by £345bn, the largest annual increase since 2020.

The IA said this demonstrated renewed momentum in the UK market and the industry’s role in helping people build financial resilience and long-term security.

“Reaching a record £11.1trn 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,” commented IA chief executive, John Owen.

“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.”

This article originally appeared in our sister publication Wealth Investment News.

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