Schroders : Los Angeles claims top spot in Schroders Global Cities 30 Index for the second time

Los Angeles has been named as the top global city for the second time in the fourth publication of the Schroders Global Cities 30 index, narrowly beating Hong Kong which took second place knocking London into third place.

US cities

US cities continued to dominate the index taking 17 of the of the top 30 places, including five of the top ten spots. New York, the most populous city in the United States jumped one place from fifth to fourth, however Boston and Chicago both fell from third place to sixth and fourth place to seventh respectively.

US cities have been in the spotlight recently as Amazon looks to find the best city to host HQ2, its second headquarters in North America. Twenty cities have been shortlisted by Amazon and of those 20, eleven feature in the Schroders Global Cities 30 index.

Chinese cities

Chinese cities saw the most improvement taking four of the top 30 places including two in the top ten. Shanghai jumped from tenth spot to fifth, Beijing climbed from 11th place to fourth and Shenzen increased its place in the index from 24th to 20th.

Australian cities

Australian cities struggled to maintain their positions in the index and were among some of the biggest fallers. Negative revision to population growth and GDP impacted Brisbane and Perth in particular. Perth dropped 15 places from 36th to 51st whilst Brisbane fell from 22nd to 30th. Melbourne also saw a drop in ranking and lost its spot in the top ten, falling from eighth place to 16th. Sydney was the only Australian city to improve its ranking, climbing from 14th place to take the tenth spot in the index.

European cities

London was once again the top ranked European city, despite falling by one place to third place in the overall index. Paris, the only other European city to feature in the top 30, climbed one place from 16th to 15th.

The Schroders Global Cities 30 index is compiled on a range of factors, including the projected growth of the economy, university rankings, disposable incomes over the next decade and the size of the population.

Hugo Machin, co-Head of Global Real Estate Securities said:

'The Schroders Global Cities 30 Index looks at scale and growth of a city. We believe that cities with scale have a structural advantage. However, the model also captures fast growing cities. This means the ideal city would be medium sized with identifiable economic growth.

'It's no surprise that Los Angeles has reclaimed its place at the top. This is due to a combination of large scale and excellent economic growth. The scale and economic depth of LA makes it a compelling location to work and live.

'Chinese cities continue to do well in the index with Shanghai and Beijing taking top ten spots. It remains clear that the increasing wealth being generated in leading Chinese cities is being reflected in the index. The scale and growth of Chinese cities is supportive of their high ranking. Shanghai, Beijing and Shenzen all moved up the index on the basis of small improvements in the income factor. This improvement shows that the population within the major Chinese cities are becoming wealthier, as the Chinese economy transitions from manufacturing to consumer.

'Australian cities generally fared quite poorly. On the positive side, Sydney continues to do well. This further supports our view that employers focus on locations with the best educated workforce and transport infrastructure to compete in the knowledge economy.

'London has slipped from second place to third. This is due to a slightly lower score on the university section of the ranking. We have made no negative revisions for London due to a perceived loss of growth from the vote to leave the EU. London remains one of our favoured places to invest.'

Machin co-manages the Schroder Global Cities Real Estate fund with Tom Walker. Their aim is to invest in stocks that should benefit from strong demand for commercial property in the world's most highly-ranked global cities. They seek to invest in cities with restrictions to sprawl, be it geographical limits or planning rules, such as London's green-belt.

The global cities team has launched the Global Cities blog which acts as a resource on the longer term trends impacting global real estate. For further reading please visit http://www.schroders.com/en/schrodersglobalcities/

CITY	COUNTRY	REGION	RANK
Los Angeles	United States	North America	1
Hong Kong	Hong Kong	Asia	2
London	United Kingdom	Europe	3
New York	United States	North America	4
Shanghai	China	Asia	5
Boston	United States	North America	6
Chicago	United States	North America	7
Beijing	China	Asia	8
Houston	United States	North America	9
Sydney	Australia	Oceania	10
San Francisco	United States	North America	11
Singapore	Singapore	Asia	12
Seattle	United States	North America	13
San Jose	United States	North America	14
Paris	France	Europe	15
Melbourne	Australia	Oceania	16
Toronto	Canada	North America	17
Atlanta	United States	North America	18
Washington	United States	North America	19
Shenzhen	China	Asia	20
Dallas	United States	North America	21
San Diego	United States	North America	22
Philadelphia	United States	North America	23
Miami	United States	North America	24
Tianjin	China	Asia	25
Baltimore	United States	North America	26
Tokyo	Japan	Asia	27
Phoenix	United States	North America	28
Minneapolis	United States	North America	29
Brisbane	Australia	Oceania	30

For further information, please contact:

Schroders

Charlotte Banks, Intermediary Tel: [phone]/ [e-mail]

Lucy Cotter, International Tel: [phone]/ [e-mail]

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