The London-based firm, whose holding company is chaired by Sir George Mathewson, has been betting on a revival in the UK economy since last year when many commentators were predicting a triple-dip recession.
The fund sees population growth, via immigration, as a key driver of the economy along with a “flourishing” car-making industry and the increasing attractiveness of UK universities to students from emerging markets. “[I] firmly believe UK GDP will only surprise upwards from here,” chief economist Savvas Savouri said, estimating that British economic growth would outpace US expansion every year from 2014 to 2020 inclusive.
“I can’t think of another country on this planet that is the nexus of emerging world growth more than the UK. By 2045 the UK’s population will be bigger than Germany’s.”
Savouri said Toscafund owns positions in housebuilders, capital goods stocks – manufacturers of goods used to make other products – and property stocks such as British Land, Land Securities and Great Portland Estates.