Over half of asset managers aiming to hire elsewhere post-Brexit

In addition to this figure, the same proportion of participants claimed that their company’s distribution strategies are in the process of being altered, while 19% have already taken action in this regard.

The survey, conducted by Oxford Economics on behalf of financial services firm State Street, was participated in by 250 asset managers globally.

“Asset managers must stay nimble to thrive in this new market environment,” explained State Street’s EMEA CEO, Liz Nolan.

“The impact of Brexit is complex, particularly given the uncertainty surrounding negotiations.”

“Our findings highlight how asset managers are proactively tackling the challenges it presents, and safeguarding their ability to support clients, remain competitive and access markets in a post-Brexit world.”

>See also: The week in UK tech: Trump’s trade deal, Brexit and digital services

Crossing borders

As for the launch of products across borders, 64% of participating asset managers declared an increase in appetite for cross-border funds, while only 1% declared a decrease.

Elsewhere within the survey’s results, 46% expressed a belief that fragmentation of fund regulations will increase within the next five years, and 51% referred to the UK as a potential base for distribution within that time frame, making it the third most popular potential domicile behind Luxembourg and the Republic of Ireland.

These figures in particular display a concern among asset managers regarding the parting of ways between UK and mainland European businesses.

“Despite the ongoing geopolitical dynamics, the data shows managers realise that, whatever barriers to trade and international cooperation may grow out of these dynamics, maintaining access to global markets and investors around the world remains essential to their business models, as well as to the institutions and individuals who rely on them for their savings and investments,” explained State Street Luxembourg head David Suetens.

>See also: The multinational impact of GDPR

Furthermore, Akbar Sheriff, head of UK Global Services at State Street, commented: “What is key for asset managers is the need for a partner that offers stability in uncertain times, as well as innovative solutions to navigate challenges.”

“With Brexit firmly on the horizon, this is more evident than ever.”

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Aaron Hurst

Aaron Hurst is Information Age's senior reporter, providing news and features around the hottest trends across the tech industry.