Research predicts growth in overseas LSE listings
29 September 2022 UK
Image: Julien Eichinger
80 per cent of institutional investors have predicted that more non-UK fund managers will list overseas on the London Stock Exchange (LSE) over the next 18 months.
The findings were outlined in an Ocorian report set to be published 13 October.
The study, conducted with US and UK institutional investors, suggests that this increase will be the result of overseas fund managers wishing to diversify their portfolios. Additionally, market growth and the ease with which funds can be listed are a factor.
The regions expected to increase their listings the most are Europe and North America, followed by the Middle East, Asia, and Africa.
However, difficulties will emerge for particular asset classes, Ocorian says. Real estate, private debt and infrastructure reveal overseas fund managers are expected to experience more problems when listing on the LSE.
ESG incorporation, cost, and regulation compliance are also predicted to be stumbling blocks across regions.
Gerry Warwick, director of fund services in the UK and Ireland at Ocorian, says: “There is a considerable amount of pent-up demand in the market with companies waiting until conditions stabilise. There is increasing awareness of the benefits of listing in the UK worldwide, but fund managers wishing to successfully list must be aware of the challenges they could encounter and plan ahead to put in place strategies to address these.”
The findings were outlined in an Ocorian report set to be published 13 October.
The study, conducted with US and UK institutional investors, suggests that this increase will be the result of overseas fund managers wishing to diversify their portfolios. Additionally, market growth and the ease with which funds can be listed are a factor.
The regions expected to increase their listings the most are Europe and North America, followed by the Middle East, Asia, and Africa.
However, difficulties will emerge for particular asset classes, Ocorian says. Real estate, private debt and infrastructure reveal overseas fund managers are expected to experience more problems when listing on the LSE.
ESG incorporation, cost, and regulation compliance are also predicted to be stumbling blocks across regions.
Gerry Warwick, director of fund services in the UK and Ireland at Ocorian, says: “There is a considerable amount of pent-up demand in the market with companies waiting until conditions stabilise. There is increasing awareness of the benefits of listing in the UK worldwide, but fund managers wishing to successfully list must be aware of the challenges they could encounter and plan ahead to put in place strategies to address these.”
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