UK to attract sovereign wealth funds

Latest figures demonstrate that sovereign wealth funds grew 18 per cent last year, to manage total assets worth $3,300 billion (£1,600 billion). Predictions show that by 2015 this will have increased to $10,000 billion.

The increased profile of sovereign wealth funds in the international finance system has generated enormous opportunities for inward investment into the UK

Andrew Cahn

Chief Executive

UKTI

The research from International Financial Services London (IFSL) cites rises in the foreign exchange reserves of some Asian nations and increasing commodity prices as reasons behind the surge.

London is aiming to attract greater investment from sovereign wealth funds.

Regulators, bankers and representatives from the funds will met this week to discuss policies to execute this plan.

Andrew Cahn, chief executive of UK Trade and Investment, which co-sponsored the research, said: “The increased profile of sovereign wealth funds in the international finance system has generated enormous opportunities for inward investment into the UK.”

According to Cahn, London's reputation as a leading financial centre will continue to attract investment from such funds, backed by the city's competitive regulatory system and its status as the home to leading fund management companies.

Last month it was announced that a voluntary set of principles will be applied to sovereign wealth funds to address the concerns that the controversial financial vehicles have attracted.