More non-UK fund managers are expected to open their first offices or expand their operations in the UK as a result of Brexit, according to research.
Professional investors said in a survey that access to talent and the belief that the UK market would grow were the main drivers.
State Street interviewed 100 professional investors internationally and found investment trusts were expected to be the most popular fund structure for 44% of respondents. These were followed by unit trusts (21%) and open-ended investment companies (20%).
Other findings included that a third of those interviewed said they believed Brexit would lead to an increase in merger and acquisition activity by European fund managers who would buy UK-based firms to give them a domestic presence.
Hedge funds, real estate funds and private equity firms were among those surveyed for the ‘Impact of Brexit on the UK fund management industry’ report.
The overall findings of the research suggested a “fairly negative outlook” for the UK fund management industry after Brexit, State Street said, despite a strong appetite for companies to maintain and grow their presence in the UK.
“Our research suggests that, despite the headwinds and complexity that Brexit is causing, the UK is still a hub for a tremendous amount of investment management expertise, and an attractive centre for fund management activity in Europe,” said Brian Allis, regional head of State Street Global Services product team.
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