Sector unveils asset management strategy to drive Scottish financial sector towards £1 trillion goal

Industry leaders have today set out ambitious plans to unlock growth in Scotland’s globally-renowned asset management sector.

Asset management was identified as a key engine for growth in the wider Sector Growth Strategy, 18 months ago. This new, focused plan outlines how Scotland’s deep expertise in data, AI, and emerging technologies leaves the asset management sector well placed to drive continued evolution and success.

Historically, data limitations may have hindered AI adoption; however, Scottish asset managers are now increasingly well-positioned to leverage advanced AI capabilities. This includes harnessing AI for sharper investment insights and transforming operational models for greater efficiency.

Asset managers in Scotland are also taking advantage of key strengths in human capital, by leveraging their close links to universities, both for talent and for opportunities for partnership and incubators. For example, asset management firm aberdeen and the University of Edinburgh have established the Centre for Investing Innovation that will harness generative AI to support the firm's investment research process, and other such partnerships should be encouraged.

Sandy Begbie CBE, CEO of SFE said:

“Scotland possesses an enviable heritage in asset management. The sector is mature, well established and a strong contributor to economic output in Scotland.  Combining Scotland’s asset management capabilities with its strong expertise in complementary areas such as platforms and wealth management, alongside well-established professional services and a strong Fintech and innovation capability via its universities will allow Scotland to grow as an innovative and globally competitive regional asset management hub.

“The ambition is clear with a stretching target of doubling assets under management in Scotland’s financial services sector to £1 trillion by 2030.”

Mike Tumilty, chair of the SFE asset management sector group and Chief Operations Officer at Aegon Asset Managment, said:

“Scotland has built a strong heritage and enviable reputation over the past 200 years in asset management, with Edinburgh being the largest asset management centre in the UK outside London with over £500bn in assets managed in Scotland.

“With its long-term investment culture, Scotland has developed strengths in managing insurance and pensions assets and in investment trusts. This strategy will help to ensure that we realise the potential growth that asset management represents.”