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23 June 2005

Corporation of London: Hedge funds’ growth brings benefits to London financial services





The Corporation of London published a report on the benefits of the hedge fund industry stating that growth in that sector has meant a net gain to jobs in London's financial services sector. Globally, assets under hedge fund management could grow by more than 400% in the next decade. London currently keeps 70 % of the EU hedge fund business. The report concluded that the biggest threat to the burgeoning new industry was the return of bull markets. There is a limited risk that hedge funds could relocate to tax advantaged locations such as Dublin but this is unlikely to happen as long as tax and regulation remain at an appropriate level.

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