Market Trends of UK Hedge Funds Industry
This section covers the major market trends shaping the UK Hedge Funds Market according to our research experts:
Assets Managed in the UK by Client Type
The UK assets management industry primarily provides products and services for clients who broadly fall into either the retail or institutional category, while a small number of IA member firms also operate directly in the private client market. In 2021, assets managed on behalf of institutional clients continued to make up the majority (77%) of assets, while just over a fifth (22%) was managed on behalf of retail clients. Pension clients are the single largest client group in the institutional market and account for 40% of the total assets under management. Among the rest of the institutional client market, insurance clients represent the second largest group, representing 11% of AUM.
Trends in Asset Allocation
The proportion of Investment Association members invested across different asset classes. Observe that almost one-third (29%) of respondents are invested across all five categories listed in the graph. Almost all (93%) of the respondents to the Survey are invested in equities and the majority (78%) are also invested in fixed income. One quarter (25%) of respondents are either equity or fixed-income specialists, investing only in one of these asset classes. Property and cash remain niche areas of investment.
