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6.2 trillion pounds in London - money center of the world.

OWoN: The money just keeps rolling into London. Money center of the world.

UK fund assets hit record 6.2 trillion pounds in 2013 - report

By Simon Jessop
29 September 2014

The UK fund management industry looked after a record 6.2 trillion pounds at the end of 2013, 50 percent more than its pre-financial crisis peak, a report by a prominent financial services lobby group said on Monday.

In its annual report, designed in part to promote the UK financial sector, TheCityUK said the British asset management sector and the financial industry as a whole remained important to the domestic economy and attractive internationally.

"The UK is one of the leading international centres for fund management and by far the largest European centre. The fund management sector is also one that consistently generates a significant trade surplus for the UK economy," said Chris Cummings, TheCityUK's chief executive.

Citing data from sources including the Investment Management Association and the British Venture Capital Association as well as its own estimates, it said the sector's assets grew 14 percent in 2013 on the previous year, due both to inflows of new funds and strong investment returns.

And after adding a further 5 percent in the first half of 2014, assets were on course for yearly growth of 9 percent.

More than a third of the 2013 total, or around 2.2 trillion pounds, came from foreign investors, the report said.

Around 4 trillion pounds of funds under management came from institutional clients, with retail clients generating a further 1 trillion and the rest made up of private-client funds and "alternative" funds such as hedge funds, it said.

The UK accounted for 8.4 percent of the world's $146 trillion in fund management assets, the report said, behind the U.S. market, which holds nearly half the global total.



  1. Another Conspiracy Theory Becomes Fact: The Fed’s “Stealth Bailout” Of Foreign Banks Goes Mainstream
    Tue, September 30, 2014

    Back in June 2011, Zero Hedge first posted:

    “Exclusive: The Fed’s $600 Billion Stealth Bailout Of Foreign Banks Continues At The Expense Of The Domestic Economy, Or Explaining Where All The QE2 Money Went“

    which we followed up on various occasions, most notably with

    “How The Fed’s Latest QE Is Just Another European Bailout” and
    “The Fed’s Bailout Of Europe Continues With Record $237 Billion Injected Into Foreign Banks In Past Month.”
    Of course, the conformist counter-contrarian punditry, for example the FT’s Alphaville, promptly said this was a non-issue and was purely due to some completely irrelevant microarbing of a few basis points in FDIC penalty surcharges, which as we explained extensively over the past 3 years, has nothing at all to do with the actual motive of hoarding Fed reserves by offshore (or onshore) banks, and which has everything to do with accumulating billions in “dry powder” reserves to use for risk-purchasing purposes (alas understanding that would require grasping that reserves are perfectly valid collateral to use as margin against purchase of such market moving products as e-mini futures, which in turn explains why traders usually don’t end up as journos).

    Fast, or rather slow, forward to today when none other than the WSJ’s Jon Hilsenrath debunks yet another “conspiracy theory” and reveals it as “unconspiracy fact” with “Fed Rate Policies Aid Foreign Banks: Lenders Pocket a Spread by Borrowing Cheaply, Parking Funds at Central Bank“

    Wait… the Wall Street Journal said that? Yup.

    Banks based outside the U.S. have been unlikely beneficiaries of the Federal Reserve’s interest-rate policies, and they are likely to keep profiting as the Fed changes the way it controls borrowing costs.

    Foreign firms have received nearly half of the $9.8 billion in interest the Fed has paid banks since the beginning of last year for the money, called reserves, they deposit at the U.S. central bankaccording to an analysis of Fed data by The Wall Street Journal. Those lenders control only about 17% of all bank assets in the U.S.

    Moreover, the Fed’s plans for raising interest rates make it likely banks will see those payments grow in coming years.

    Hmm, we almost feel like we should bring up the dreaded “P” word considering the bolded sentence is a recap of what we said in February of 2013 in “How The Fed Is Handing Over Billions In “Profits” To Foreign Banks Each Year.” That’s ok, though: imitation, flattery and all that…

    So here is Hilsy “figuring out” what we have been explaining for over 3 years!

    Though small in relation to their overall revenues, interest payments from the Fed have been a source of virtually risk-free returns for foreign banks. Large holders of Fed reserves include Deutsche Bank, UBS AG, Bank of China and Bank of Tokyo-Mitsubishi UFJ, according to bank regulatory filings. U.S. banks including J.P. Morgan Chase, Wells Fargo and Bank of America Corp. are also big recipients of Fed interest payments, according to the filings.

    “It is a small transfer from U.S. taxpayers to foreign taxpayers,” said Joseph Gagnon, a former Fed economist at the Peterson Institute for International Economics. The transfer, he added, was a side effect of Fed policy, not a goal.

    Actually it is a goal, but that would lead to a whole lot of embarrassing congressional hearings which the Fed would rather avoid, plus nobody really “gets” it. The reason why? Apparently things are so “complex” that anyone who figured it out years ago was clearly a conspiracy theorist:
    (see more at link)

  2. COCKROACHES HATE THE LIGHT : David Common Purpose Cameron's dirty little secrets EXPOSED

    Recent Skype talk with Ex RAF Whistleblower Gordon Bowden.
    re - upcoming event on UK Column.

    The BBC and Rupert Murdoch will not be able to keep the lid on this TRILLION POUND FRAUD for much longer.

    Please share... Cockroaches hate the light.


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