Preparations for the UK to leave the European Union are leading to an increasingly global investment hub based in the UK, according to the Investment Association.

The results of its annual Asset Management Survey have highlighted the importance of continuing to grow the UK investment hub for the benefit of savers, businesses and the wider economy.

The IA said the UK investment hub brings significant benefits to the economy, accounting for 6 per cent of net services exports, employing over 92,000 people and putting the nation at the centre of global asset allocation.

In addition, it said the UK's investment management industry plays a vital role for consumers both domestically and across Europe. It now runs over £1.2trn on behalf of European clients, representing nearly 40 per cent of total European assets which is more than the French, German and Italian industries combined.

As well as providing vital products and services for savers across the world, the industry plays a crucial role in funding businesses and the economy as a whole through tax revenues, job creation and economic stability and growth.

Despite the UK voting to leave the EU, the IA said the investment industry has benefited from the free movement of people across the EU and continued access to talent globally is of “utmost importance” if the industry is going to continue to prosper.

It estimates that over 92,000 people are now employed in activities related either directly or in-directly to asset management, including fund and wider administration activities. People directly employed by the industry in the UK grew 5 per cent from 35,100 to 37,000 in 2015.

However, it said does not know what the relationship between the EU and the UK will be like post-Brexit, but the decision to leave the EU may have ramifications for all industries.

Commenting on the survey, IA chief executive Chris Cummings said that by serving as a 'turntable of capital', the investment hub enables its clients to benefit from economies of scale and unrivalled investment expertise while also providing “lifeblood funding” for capital markets in the UK and globally.

"In the last year the UK's investment hub has become an even more global entity and that brings direct benefits to the UK economy, including contributing to net exports, employing tens of thousands of people and fueling British business,” he said.

"The industry is now considering the ramifications of Brexit in earnest and the focus must be on seizing the opportunities that are being presented to continue to grow the UK's investment hub globally.

"The UK asset management industry can, should and will be able to continue to serve thousands of European customers in the future and there is an exciting opportunity ahead to grow our presence in new and exciting markets the world over."

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