Asia hedgies’ boost for City
LONDON is set to pick up lucrative new work from the boom in the Asian hedge fund industry, according to the authors of a new report.
China and Asia’s other emerging economies are expected to drive growth in the size of the global hedge fund industry this year and the skills and location of the City of London mean it is in line to pick up management work, according to Marko Maslakovic, senior economist at TheCityUK. London currently runs about $280bn worth of single manager hedge funds, the lobby group said.
“The structural advantages which have attracted around 800 hedge funds to London include its local expertise and the proximity of clients and markets. The UK is also a leading centre for hedge fund services such as administration, prime brokerage and custody,” Maslakovic said.
TheCityUK’s 2012 hedge funds report, published today, shows London remains the dominant centre for hedge funds in Europe, managing 85 per cent of the continent’s assets.
Global hedge fund assets under management fell three per cent to $1,902bn at the end of 2011. London’s share of the market dipped slightly to 18 per cent, but remains more than double its proportion in 2001. New York had a 42 per cent share last year.