ACS products fuel growth of the UK fund industry
New findings from the 5th annual edition of Monterey Insight UK Fund Report, the independent fund research company, reveal the market shares of all service providers in the UK fund industry.
As at 31st December 2021, fund assets of UK regulated funds reached US$2,976.8bn, a growth of 15.2% compared to last year with a total number of funds and sub-funds coming up to 3,695 an increase of 1.7% from last year.
Equity funds represented the largest asset class by assets (USD$1,413.9bn) followed by index tracking equities (USD$495.5bn) and mixed equities/bonds (USD$482.9bn) in third position.
Among the largest fund promoters/initiators of UK regulated schemes, BlackRock Financial Management continue to lead with total net assets of US$283.4bn, followed by St James’s Place with US$198.9bn and Aviva Investors in third position with US$127.2bn.
For fund administration services (fund accounting) across UK regulated funds, State Street maintains its lead in first place ranking by assets (US$660.8bn), followed by Northern Trust (US$500.4bn) who soar up to second from third place, while BNY Mellon (US$449.3bn) drop one place to third position ahead of HSBC in fourth with (US$443.1bn).
The leading administrators by product types are: State Street ranks first with a total of US$376.4bn assets for OEICs and US$248.0bn assets for Unit Trusts, respectively. Northern Trust takes the top position with a total of US$266.2bn assets for ACS schemes while Baillie Gifford takes the first spot for Investment Trusts with a total of US$39.5bn assets.
Among custodians, State Street climbed back to first position having the largest assets under custody with US$632.4bn, ahead of BNY Mellon (US$609.5bn) in second place and Northern Trust (US$534.9bn) in third place.
The market share ranking by assets of depositaries/trustees ranked NatWest Trustee & Depositary Services in first place for UK regulated funds with a total of US$592.9bn assets, followed by Northern Trust with US$494.0bn and moving up to third position HSBC with US$431.5bn.
In the transfer agents ranking, SS&C Financial Services International remain in first position with total net assets of (US$990.5bn) followed by Northern Trust (USD$421.6bn) in second position and BNY Mellon (US$348.3bn) in third.
Among UK’s professional audit firms, PwC retains the lead position in auditor’s rankings in both number of funds and assets auditing a total of 1,070 funds and sub-funds with a total of US$1,144.9bn in assets. They are followed by EY moving up the rankings to second position by number of funds with 711 funds (US$745.8bn) and KPMG now in third position with 607 funds (US$473.3bn).
Turning to new business, M&G, as a promoter/initiator secured the largest proportion of new business introduced over the year (US$18.7bn in assets). Further breakdown of new business information shows global bonds are a leading sector by assets and Global Equities lead in number of funds launched during the year.
The amount of new UK regulated schemes and sub-funds launched as at 31st December 2021, amounted to total assets of US$77,3bn from over 200 sub-funds. From this, total assets of US$21.3bn from 75 sub-funds were generated from the creation of entirely new schemes.
Among UK newly launched regulated fund structures, ACS schemes lead with total assets of US$34.1bn, followed closely by OEIC schemes, in second position, with total assets of US$32.0bn. However, when it comes to newly launched products by number of sub-funds and OEICs lead with the highest number of new funds launched, with over 150 sub-funds followed by ACS schemes with over 20 sub-funds.
Karine Pacary, Managing Director at Monterey Insight commented:
“We are pleased to reveal the new 2022 Monterey UK Fund Report where for the third consecutive year the UK fund industry reveals a double-digit increase. The ACS products continue to be an important player in the industry, accumulating the top rankings for newly launched products by assets and lead with best growth performance during the year (+25%). ESG recorded an increase of 77% in number of funds and 114% in assets reaching USD168.8bn demonstrating sustainable and responsible investment continues to be a popular, dominant global trend, and these types of products are increasing in popularity. During the year, the landscape has been challenging in many ways: high inflation, energy crisis, and the turmoil in politics, however, the UK has shown resilience as can be seen in the positive results of 2021.”
Notification for reference to the reader:
The figures include the following types of collective investment schemes that are regulated by the Financial Conduct Authority (FCA) as at 31st December 2021: authorised contractual schemes, authorised unit trusts and open-ended investment companies. Common investment funds, common deposit funds and investment trusts are also included in this report.
Our definition of an administrator is the company performing primarily fund accounting duties and TNAV calculation. If the fund accounting is delegated to a third party, we list the delegated firm as the administrator.
Authorised Corporate Director
This includes the listing of authorised corporate director (ACD), authorised fund manager (AFM), authorised contractual scheme (ACS) and authorised unit trust manager (AUTM).
Our definition of a custodian is the company carrying the safe keeping of the assets. When the depositary has delegated the safe keeping of the assets to a third party, the delegated firm will be listed as custodian.
The depositary/trustee rankings include only the listing of appointed depositary/trustee as at 31st December 2021.
Transfer Agent/ Registrar
The transfer agent rankings also include the role of registrar
For more information, please contact:
Karine Pacary, Managing Director, Monterey Insight, Tel. +44 (0)20 4526 2940
Notes to Editors:
Monterey Insight is an independent fund research company that provides comprehensive statistical analysis of the Guernsey Ireland, Jersey, Luxembourg, and UK fund industries: the only complete reference of service providers for all funds serviced in these jurisdictions.
As at 31st December 2021, leading service providers for all funds domiciled in the UK were as follows:
Source: Monterey Insight UK Fund Report 2022