A third of investors believe more non-UK fund managers will open London offices after Brexit

More non-UK fund managers could open offices in Britain to retain access to expertise following Brexit, new research has found.

One in three institutional investors believe the UK’s exit from the European Union will lead to an increase in merger and acquisition activity, with European firms buying UK businesses to give them a presence in the country.

Despite an overall negative outlook – 61 per cent of participants said assets under management (AUM) in the UK will be lower one year after Brexit – almost a quarter said more European fund managers will open offices in the UK.

A total of 22 per cent said the same of Asian and US fund managers, according to a survey of 100 institutional and alternative investors carried out by financial services firm State Street.

More than half of those surveyed – 55 per cent – believed UK authorities will make it more appealing to open a London office after Brexit.

Brian Allis, head of State Street global services’ EMEA product team, said: “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.

“It is reassuring to see that, however negative the outlook for the UK fund industry may be now, investors still want to maintain and grow their presence locally.”