State Street Corporation published its latest research, The Impact of Brexit on the UK fund management industry.

According to the latest research, more than one- third of survey respondents (34%) believe there will be an increase in merger and acquisition activity within the fund management sector, driven by European fund managers looking to acquire UK-based firms to give them a presence in the local market post Brexit.

Against this backdrop, while the survey’s overall findings suggest a fairly negative outlook for the UK fund management industry after Brexit, there is still strong appetite for companies to maintain and grow their presence in the UK.

Nearly a quarter of survey respondents (24%) believe that more European-based fund managers will look to open offices in the UK after Brexit. Furthermore, the fund structures that investors believe will prove the most popular for European and other foreign fund managers looking to expand their UK operations include Investment Trusts (44%), Unit Trusts (21%) and Open Ended Investment Companies (20%).

“Our research suggests that, despite the headwinds and complexity that Brexit is causing, the UK is still a hub for a tremendous amount of investment management expertise, and an attractive centre for fund management activity in Europe,” said Brian Allis, head of State Street Global Services’ EMEA product team. “It is reassuring to see that, however negative the outlook for the UK fund industry may be right now, investors still want to maintain and grow their presence locally.

To access the findings, click here.