London has held on to the top spot in Schroders Global Cities Index for the second year, drawing the asset management giant’s admiration for its “innovation”.

London, Boston, San Francisco, New York and Melbourne are the best global cities, says asset management giant Schroders.

Schroders’ annual index rates global cities using four metrics; economic, environmental, innovation and transport. It aims to “identify those cities with a combination of economic dynamism, world-class universities, forward-thinking environmental policies and excellent transport infrastructure.”

The UK capital was ranked first among its global peers for innovation. Universities and public transport also helped boost London’s overall rating. “These factors help to attract highly paid workers and drive economic growth,” explains the Schroders team. “Universities, in particular, are integral to the future prosperity of a city, as highly qualified graduates earn more money and generate higher tax revenues.”

Boston has overtaken San Francisco to move up to second place in the 2022 index, thanks to its transport infrastructure and contributions to bio-medical research (including the development of Covid-19 vaccines). America’s biggest city, New York, climbs one spot to fourth.