Scotland has long been renowned as a centre of excellence in investment management with its origins dating back to the nineteenth century.
The sector encompasses a broad mix of large institutional, and smaller employee-owned businesses that deliver a wide variety of innovative investment services to institutional and personal clients around the world.
The significant number of mergers and acquisitions within the global fund management industry over the past five years has reduced the overall number of Scotland’s investment management institutions, but provided strong foundations for future growth and expansion. The quality of investment management expertise available in Scotland has lead to a robust growth of boutique firms and new business start-ups in the sector in Scotland – a trend that looks set to continue.
Key facts and figures
All of our member firms in the investment management sector have their global or UK headquarters in Scotland.
The global nature of the sector is reflected in its working populations. Our investment management members employ over 3,000 people in Scotland, over 1,000 staff in the rest of the UK, over 800 in Continental Europe, 4,900 in the US, 1,100 in Asia and a further 780 in the rest of the world, totaling over 11,000 worldwide.
All of our member firms service their UK wide customer base from Scotland, and a number of them coordinate global client servicing from their Scottish bases.
SFE member companies manage over £533billion of funds directly from Scotland, most of which is managed by companies within the investment management sector. Our investment management member companies manage around £429billion in Scotland, of which £226billion is invested in equities, some £139billion in bonds, around £25billion in property and over £29billion in cash. A further £9billion is invested elsewhere.
Scotland’s investment management sector has extensive experience in areas including:
- Investment trusts
- OEICs (open ended investment companies)
- Unit trusts
- Global equity
- Global fixed income
- Money market funds
- Private equity
- Venture capital
- Property funds
- Hedge funds
- Specialist equity and bond funds
- Emerging market funds
It also services a diverse international client mix from around the world including:
- Private clients
- Institutional mandates
- Retail funds
- Corporate pension funds
- Stakeholder pensions
- Personal pensions
Key sector statistics for SFE member companies
Employment within Scotland >3,000
Employment outside Scotland >9,000
Funds managed in Scotland (within Investment Management sector) £429billion
Total cross sector funds managed in Scotland by all SFE members >£533billion
Did you know?
The Investment Trust movement grew up in the 1870s as a vehicle for world-wide collective investment (the emerging market funds of the nineteenth century) and was pioneered by a Scotsman, Robert Fleming of Dundee. The primary investors were the rich owners of the Dundee based jute industry who wanted to invest their profits.
Robert Fleming’s fame is somewhat overshadowed by his grandson, Ian Fleming, the novelist and creator of James Bond.
Aberdeen Asset Management Plc
AEGON Asset Management UK
Alliance Trust PLC
Artemis Investment Management
Baillie Gifford & Co
Cornelian Asset Managers Ltd
F&C Asset Management plc
First State Investments
Franklin Templeton Investments
Glasgow Investment Managers Ltd
Martin Currie Investment Management Ltd
Newton Investment Management Ltd
Resolution Asset Management
Scottish Equity Partners
Scottish Widows Investment Partnership
Standard Life Investments