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May 3, 2019

London now city with second most investment potential despite Brexit uncertainty

By Jamie Crawley

London is now the city with the second highest investment projection despite ongoing Brexit uncertainty, according to the Global Cities 30 index compiled by Schroders.

From a third-placed ranking in 2018, London has overtaken Hong Kong but remains behind Los Angeles, which retains the top spot.

“The ranking reinforces London’s position as a significant contributor of the UK economy and highlights the UK’s capital attraction as a location for real asset investing,” a statement from Schroders said.

London was previously ranked 8th in 2016, and 3rd in 2017 and 2018.

Schroders notes that London remains resilient to Brexit uncertainty thanks to positive employment data, which points towards strong income growth.

Paris and Munich are the only two other European cities on the list in 17th and 28th place respectively.

Thanks to positive data on employment rates, the USA dominates the list with 17 entrants, including three of the top five (Los Angeles, New York and Boston).

London investment attraction defies Brexit

British investment manager Schroders’ Global Cities 30 index is compiled according to projection based on economic growth, population size and disposable incomes.

Schroders stress the ranking is based on forecasts and assumptions which may change, due to the influence of external factors.

However, Schroders’ projections for London are somewhat borne out by other recent positive views for the UK thanks to its technology scene and lure for foreign investment.

Hugo Machin, co-head of global real estate securities at Schroders, says: “London has unmatched attractions, from green spaces to a vibrant cultural and entertainment scene.

“People want to live and work there and that means London can attract the world’s most skilled employees.

“London, like a number of other true Global Cities, remains at the centre of the global economy despite challenges surrounding Brexit.”

Schroders recently unveiled Schroders Personal Wealth, a joint-venture with Lloyds Banking Group, possibly with views towards becoming a top player in the UK mass-affluent wealth management sector.

 

 

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