Assets under management in the UK wealth management sector have surpassed £1 trillion for the first time.

The milestone, reported in benchmarking firm Compeer’s Q2 market update, came as firms showed improved profit margins, to just over 25 percent for wealth managers and just over 45 percent for execution-only firms.

“However...over a longer period of time, although the industry has performed very well in terms of growing assets and revenues, this is not reflected in similar improvements in margins, highlighting the issue the industry continues to face in terms of scalability,” Compeer’s head of client service...