Watch/Listen

60 seconds on investing in "brain cluster" cities

Seattle is a prime example of the type of city our real estate investment team favours. This video explains why.

13 June 2017

Hugo Machin

Hugo Machin

Co-Head of Global Real Estate Securities

Although 80% of the world’s economic growth comes from cities, within that there’s a very different story.

There are certain post-industrial cities with a strong manufacturing base that are doing less well. So even though these cities have huge scale and population, there is really nothing driving their economies forward.

On the other side of the coin, when you look at a city like Seattle on the west coast of the US we can see a city which typifies what we look for.

Seattle has a very strong innovation centre. It is what we describe as a “brain cluster”, where technology and research institutes meet and drive the new economy forward.

Effectively you get a self-fulfilling prophecy where strong job creation creates further economic activity. This in turn draws people into that city and really drives the city's economy forward.

Important Information: This communication is marketing material. The views and opinions contained herein are those of the author(s) on this page, and may not necessarily represent views expressed or reflected in other Schroders communications, strategies or funds. This material is intended to be for information purposes only and is not intended as promotional material in any respect. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. It is not intended to provide and should not be relied on for accounting, legal or tax advice, or investment recommendations. Reliance should not be placed on the views and information in this document when taking individual investment and/or strategic decisions. Past performance is not a reliable indicator of future results. The value of an investment can go down as well as up and is not guaranteed. All investments involve risks including the risk of possible loss of principal. Information herein is believed to be reliable but Schroders does not warrant its completeness or accuracy. Some information quoted was obtained from external sources we consider to be reliable. No responsibility can be accepted for errors of fact obtained from third parties, and this data may change with market conditions. This does not exclude any duty or liability that Schroders has to its customers under any regulatory system. Regions/ sectors shown for illustrative purposes only and should not be viewed as a recommendation to buy/sell. The opinions in this material include some forecasted views. We believe we are basing our expectations and beliefs on reasonable assumptions within the bounds of what we currently know. However, there is no guarantee than any forecasts or opinions will be realised. These views and opinions may change.  To the extent that you are in North America, this content is issued by Schroder Investment Management North America Inc., an indirect wholly owned subsidiary of Schroders plc and SEC registered adviser providing asset management products and services to clients in the US and Canada. For all other users, this content is issued by Schroder Investment Management Limited, 1 London Wall Place, London EC2Y 5AU. Registered No. 1893220 England. Authorised and regulated by the Financial Conduct Authority.