The City of London Corporation has urged the UK government to set a national strategy to encourage more sovereign-owned funds to establish offices in the country, claiming it could attract a further £7.7bn-worth of FDI across the UK by 2030, by FDI Intelligence
In a report released on September 19, the Square Mile’s governing body cites fresh data showing that sovereign wealth funds (SWFs) and public pension funds that have opened offices in the UK over the past decade have gone on to double their investment in the country over the following five years.
To fully capitalise on this, the report recommends the establishment of a nationwide financial and professional services strategy, echoing calls by former investment minister Lord Johnson to encourage more foreign pension funds and SWFs to set up shop in the UK.
“The UK’s financial and professional services are the engine in the country’s economy. It is therefore essential that the UK positions itself as the premier destination for overseas investors,” said Chris Hayward, policy chairman of the City of London Corporation, in a statement.
The report points to examples including the Canadian pension fund British Columbia Investment Management Corporation, which increased its UK investments by £4.7bn after opening an office in 2016. Singapore SWF Temasek also increased its UK investments by £2.2bn after opening in the UK in 2014.
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